Everbright to use IPO proceeds for expansion, diversification

The president of Everbright Securities said the domestic brokerage plans to expand overseas and diversify its businesses following a US$1.6 billion initial public offering in Shanghai, Reuters reported. Xu Haoming said the company would use the proceeds of the IPO to fund its private equity unit, add brokerage outlets and expand its underwriting business. The company might also consolidate its securities business under its parent, Everbright Group, Xu said, adding that it hoped to create a fully owned asset management unit. Everbright Securities plans to sell as many as 520 million shares, or 15.21% of its enlarged share capital, at RMB19-RMB21.08 (US$2.78-US$3.08) per share, representing a price/earnings ratio of 52.78-58.56.