Bank of Jiujiang, a lender in eastern China’s Jiangxi province, plans to raise a US$500 million initial public offering (IPO) in Hong Kong, according to a report from Bloomberg.
Based in a city on the southern banks of the Yangtze River, the Bank of Jiujiang has already begun reaching out to investment banks about the potential listing, in which is scheduled to list in the second half of 2017.
The lender’s move in seeking a Hong Kong listing follows other regional banks, which includes Guangzhou Rural Commercial Bank Co. and Jilin Jiutai Rural Commercial Bank Corp., and is aimed to boost its profile and raise funds for expansion.
According to data compiled by Bloomberg Show, financial institutions have completed US$18.2 billion of first-time share sales in the city last year, accounting for 72 percent of fundraising from new listings in 2016.
Founded in 2000 and operating as an urban commercial bank, Jiujiang Bank currently has 12 branches in China, with 10 of its branches located in the Jiangxi Province while 2 are situated in Guangzhou.
Backers of the Bank of Jiujiang includes the local government, state-owned Beijing Automotive Group Co. and Industrial Bank Co. The lender’s net income fell 0.6 percent in 2015 to 1.78 billion yuan (about US$257 million), according to its annual report.
Details of the IPO are still in deliberations, and there is no certainty that this potential listing will lead to a share sale.
By Vivian Foo, Unicorn Media
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