The company, China’s seventh-biggest brokerage firm, earlier hired China Galaxy International, Goldman Sachs and JP Morgan as sponsors and global co-ordinators to lead its Hong Kong offering, and has recently added 13 banks.
The 13 are ABC International, BoCom International, Bank of America Merrill Lynch, Credit Suisse, CCB International, Citigroup, Deutsche Bank, Haitong Securities International, HSBC, ICBC International, Nomura, Standard Chartered and UBS.
The role of the newly added banks has not been fixed as yet and will depend on the strength of investor demand, especially from cornerstones, the banks can generate for the deal.
The securities house’s goal is to complete its Hong Kong listing in May. Whether or not it will list simultaneously in the Shanghai market will entirely depend on when the China Securities and Regulatory Commission reopens the market for domestic listings.
Memories of PICC
Galaxy Securities’ decision to pick 16 banks again highlights the keen competition in the banking industry. With a much smaller fundraising size than the Hong Kong IPO of People’s Insurance Company (Group) of China, the securities house has picked almost the same number of banks to arrange its share sale.
PICC raised HK$27.6bn (US$3.55bn) through a listing in Hong Kong last December. In all, 17 banks arranged that transaction.
CICC, Credit Suisse, Goldman Sachs and HSBC were joint sponsors and, along with Deutsche Bank, joint global co-ordinators and joint bookrunners.
Other joint bookrunners were ABC International, Bank of America Merrill Lynch, BOC International, CCB International, Citigroup, Daiwa, Essence Securities, Haitong International, ICBC International, JP Morgan, Morgan Stanley and UBS.
