China's seventh largest commercial bank, CITIC Bank, has commenced a dual $3 billion IPO on the Shanghai and Hong Kong stock exchanges. The finance group expects that it will attract global investors keen to gain access into the rapidly growing Chinese market.
According to Reuters, the bank, which is 80% owned by Beijing-controlled conglomerate China International Trust and Investment Corp, expects to begin trading on April 27, 2007, making it the second simultaneous listing in Hong Kong and Shanghai.
Furthermore, CITIC’s debut is set to be the largest stock sale by a Chinese bank since ICBC raised a record $21.9 billion in October 2006.
The Chinese bank has forecast a 53% increase in 2007 net profits to CNY5.7 billion from CNY3.7 billion the previous year, reported the BBC.
According to Reuters, the bank reduced the Hong Kong share issue by 65 million shares to 4.885 billion from 4.95 billion, while its Shanghai issue rose slightly to 2.302 billion shares from the 2.3 billion shares initially announced.
The remainder of the shares will be sold to retail investors.