Postal Savings Bank of China launches the biggest IPO since Alibaba

Postal Savings Bank

Postal Savings Bank of China has launched the biggest initial public offering since the record float of Alibaba two years ago, in a deal that could raise up to $8.1 billion in Hong Kong. The float values the bank… boasting 505 million retail customers, at between $49 billion and $54 billion… While Hong Kong’s bankers reported strong early investor interest in PSBC’s shares, the offering comes heavily buttressed by official support, having pre-sold three-quarters of the deal to a group dominated by fellow state-owned enterprises… The funds raised will go towards developing PSBC’s business. It is China’s fifth-largest lender by assets and counts 40,000 outlets, including its post office counters… The listing will bolster Hong Kong’s position as the leading IPO centre to date in what is proving a soft year for equity raisings. So far it has raised $9.5 billion in IPOs… That puts it ahead of $7.5 billion for Shanghai and $6.9 billion for the New York Stock Exchange.

 

Jennifer Hughes and Peter Wells

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