Hong Kong’s IPO scene turns hotter as temperatures drop in the city. In a span of eight days, China Everbright Bank trumps China Cinda Asset Management as the biggest initial public offering in Hong Kong for the year, raising three billion US dollars on Friday.
Finally listed after two failed attempts. China Everbright Bank displaces China Cinda’s listing just over a week ago as it becomes the largest IPO for the year, based on the number of shares that investors ordered before the launch. The Mainland’s eleventh largest bank by assets – plans to use the money to shore up its capital to meet stricter regulatory requirements. For Everbright Chairman Tang Shuangning, it is well worth the wait.
A week before the share sale, Everbright secured over one-point-seven billion U-S dollars from 19 cornerstone investors. Those who committed to hold their stake for a certain period include Canadian insurer Sun Life Financial and U-S insurer Prudential Financial.
Even before the Hong Kong listing, Everbright Bank had already been trading in Shanghai. It’s the third Chinese bank to launch an IPO in Hong Kong in recent weeks after Bank of Chongqing and Huishang Bank. The listing culminates a two-year wait, when Everbright attempted to raise as much as six billion U-S dollars in 20-11. It tried again in May last year – before canning it due to poor market conditions.
With market conditions still relatively volatile – strategists such as Linus Yip advise investors a certain degree of caution.Everbright doesn’t possess that ‘novelty factor’ that Cinda does, says Mr. Yip. Reason why Everbright may have to jostle for investor attention against other listed lenders, as it joins the Hong Kong stock market from today.
Source: CCTV
