Everbright Securities raises $1.1b in HK

Everbright Securities Co raised $1.1 billion after pricing its Hong Kong first-time share sale above the midpoint of a marketed range.

The brokerage sold 680 million shares at HK$12.68 each ($1.63), after earlier offering them at HK$11.80 to HK$13.26 apiece, according to terms for the deal obtained by Bloomberg.

The final price represents a 38 percent discount to Everbright Securities’ last closing price in the Shanghai bourse.

Everbright Securities is selling shares in Hong Kong to expand margin financing and fund potential acquisitions after tradingvolumesin themainland stock market fell this year.

Theoffering willbethe city’s second mainland brokerage listing this year, following the $1.1 billion offering from Orient Securities Co in June.

Cornerstone investors including State-owned China Shipbuilding Industry Corp and China State Construction Engineering Corp bought $764 million of Everbright Securities stock, accounting for69percent of the base offering, according to the terms.

China Life Insurance (Group) Co and US insurer Prudential Financial Inc were also cornerstone investors in the sale, agreeing to hold their shares for six months in return for an early and guaranteed allocation.

China Everbright Capital Ltd, UBS Group AG and Bank of America Corp are joint sponsors of the listing.

Everbright Securities plans to start trading inHong Kong on Thursday, the terms show.

the number of shares that Everbright Securities sold at HK$12.68 each