China Bohai Bank is considering a Hong Kong listing next year to raise US$2bn–$3bn, said people with knowledge of the matter.
The national joint-stock commercial bank is in early discussions with potential advisers and has not appointed sponsors for the deal yet.
The Chinese lender posted a net profit of Rmb7.08bn (US$991m) in 2018, up 4.8% from 2017. As of December 31 2018, its total assets stood at Rmb1trn. Its non-performing loan ratio and core Tier 1 capital adequacy ratio were 1.84% and 8.61%, respectively.
Founded in 2005, Bohai Bank counts Tianjin TEDA Investment, Standard Chartered Bank (Hong Kong), China Shipping Investment and State Development & Investment among its shareholders.
StanChart is Bohai Bank’s second largest shareholder with a 19.99% stake, behind TEDA, which holds 25%.
A spokesperson from Bohai Bank told IFR the lender’s business is expanding rapidly and it is considering a range of fundraising plans to fund its growth and replenish capital.
The bank received regulatory approval in August to issue perpetual bonds of up to Rmb30bn.
Bohai Bank joins other Chinese lenders planning a Hong Kong IPO this year or next. Bank of Guizhou started pre-marketing an IPO of up to US$1bn last week and Dongguan Rural Commercial Bank is planning to raise up to US$1bn next year.