Ru­ral Chi­nese bank eyes share sale in Hong Kong

The Pak Banker - - Front Page -

HONG KONG: Chongqing Ru­ral Com­mer­cial Bank is set to be­come China's first re­gional ru­ral lender to float af­ter kick­ing off a share sale in Hong Kong, a re­port said Tues­day.

The bank, one of China's largest len­ders to farm­ers and small busi­nesses, will sell two bil­lion new shares be­tween 4.50-6.00 Hong Kong dol­lars (58-77 US cents) with an op­tion to is­sue more shares that could push the deal as high as 1.78 bil­lion US dol­lars, the Fi­nan­cial Times re­ported. The move could lead to sim­i­lar moves by other ru­ral-fo­cused Chi­nese len­ders, it added. The lender launched an in­vestor road­show on Mon­day, the FT said, de­spite jit­tery mar­kets that have prompted at least three firms to de­lay their planned Hong Kong share sales in the past week.

Among those to can­cel was EuroSibEn­ergo, con­trolled by Rus­sian bil­lion­aire Oleg Deri­paska, which shelved its 1.5 bil­lion US dol­lar ini­tial pub­lic of­fer­ing, said a Dow Jones Newswires re­port cit­ing un­named sources

Deri­paska's met­als gi­ant UC Rusal raised 2.2 bil­lion US dol­lars in Hong Kong in Jan­uary as it be­came the first Rus­sian com­pany to list on the ex­change's bourse. Chongqing Ru­ral Com­mer­cial Bank was formed in 2008 through the merger of dozens of credit co­op­er­a­tives in the coun­try's im­pov­er­ished west, the Fi­nan­cial Times said. In Au­gust, Agri­cul­tural Bank of China -one of China's Big Four len­ders --raised 22.1 bil­lion US dol­lars in a share sale that set a world record at the time. - PB News

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