State-owned Postal Savings Bank of China on Tuesday launched an initial public offering in Hong Kong worth up to $8.1 billion. A group of six cornerstone investors will buy as much as $5.86 billion worth of stock on offer, or about 72% of the IPO, underscoring tepid demand for Hong Kong offerings from retail investors and fund manager. Large investments by cornerstone investors hurt liquidity for IPOs once the shares start trading, as the stock is locked up for a minimum of six months. PSBC, China’s largest bank by number of branches, is offering 12.1 billion new shares in an indicative range of HK$4.68 to HK$5.18 each, according to a term sheet seen by Reuters.
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