Chinese Bank Raises $1B Ahead of IPO

Postal Savings Bank of China has raised $7bn (£4.6bn) from 10 domestic and foreign investors ahead of an initial public offering (IPO) next year.

The state-owned bank has sold a 17% stake to investors including UBS, JPMorgan and Canada Pension Plan Investment Board.

The deal values China’s sixth-largest bank by assets at $41bn.

The bank said the stake sale was the biggest private fundraising by a Chinese financial institution.

Its Chinese investors include Alibaba’s Ant Financial unit, Tencent and China Life Insurance.

The banking giant has more than 40,000 branches in China and almost half a billion customers. It is a subsidiary of the China Post Group, which is owned by the country’s ministry of finance.

Its public listing in Hong Kong next year could raise up to $15bn, according to analysts, but the bank has not revealed a timeline or the size of its IPO.

The share offering would make the Chinese bank the second postal bank to go public in Asia after Japan Post’s record IPO in November.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza