Bank of Beijing mulls IPO

Bank of Beijing, the second municipal lender allowed to operate outside its home city, plans to raise about US$500 million from an initial public offering by the second quarter of next year at the earliest, the South China Morning Post reported, citing market sources. The bank is eyeing a Hong Kong offering but the China Securities Regulatory Commission wants it to list in the mainland, the sources said. Bank of Beijing chairman Yan Bingzhu said last month the lender was talking to underwriters about a share sale by the end of next year but would not say whether the sale would be held in Hong Kong or the mainland. ING Group, the largest bank in the Netherlands, owns 19.9% of the bank and International Finance Corp, the private sector arm of the World Bank, has a 5% stake. Nanjing City Commercial Bank, 19% owned by France's BNP Paribas, is also awaiting approval to sell shares in the domestic market.