Rural Chinese bank eyes share sale in Hong Kong
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