China Minsheng Banking Corp announced that it plans to sell as many as 3.32 billion new shares in Hong Kong in an attempt to increase its capital base and add a new foreign investor, the Wall Street Journal reported. Although the bank did not announce how much money it expects to raise from the listing, according to Friday’s final share price of RMB7.27 (US$1.06), the bank could net nearly US$3.53 billion. The listing would represent 15% of the firm’s enlarged share capital. Minsheng Bank said it expects to have the listing take place within the next 18 months, pending shareholder approval on June 22. The bank hopes to find a foreign strategic investor to replace Singapore’s sovereign-wealth fund, Temasek Holdings, which divested itself of its holdings in China Minsheng. The deal continues the recent trend of Chinese banks raising capital through bond and share listings. Beijing has pushed the sector to increase lending as a way to buoy up the economy.
You must log in to post a comment.
Yes, I would like to receive emails from China Economic Review. (You can unsubscribe anytime)
Copyright © 2018 SinoMedia Group Limited All rights reserved