Postal Savings Bank of China has set a target of HK$57bn–$63bn (US$7.3bn–$8.1bn) from its Hong Kong IPO after lining up five cornerstone investors to buy most of the shares, according to sources close to the plans.
The Chinese lender is looking to sell about 12.2bn H-shares at an indicative price range of HK$4.68–$5.18, the sources said.
The range represents a 2016 P/B of 0.94–1.02, according to one of the sources.
PSBC is planning to sell about 75% of the float to five cornerstone investors, said two of the sources. The biggest of those, China State Shipbuilding, will invest US$2.5bn, Shanghai International Port Group will take US$2bn and the HNA group US$1bn.
Bookbuilding will start on September 13 and pricing will be on September 20. Listing is scheduled for September 28.
The listing of PSBC, China’s biggest lender by branches, is set to be the world’s largest since Chinese e-commerce giant Alibaba Group went public through a US$25bn IPO in 2014.
Proceeds will be used to replenish its capital.
Bank of America Merrill Lynch, CICC, Goldman Sachs, JP Morgan and Morgan Stanley are joint sponsors on the IPO. UBS is the sole financial adviser.
