Strategy
Chinese Banking Giant Selects Two US Banks For Its Planned $4 Billion IPO In 2015 - Report
Bank of Beijing, one of China's largest banks, selects Morgan Stanley and Goldman Sachs to lead its planned IPO in 2015.
Bank of Beijing, one of China's largest commercial banks, has hired two of the biggest banks in the US to handle its planned initial public offering in Hong Kong in 2015, according to media reports.
The government-controlled bank, which is also 13.64 per cent owned by ING, is planning to sell up to 3.4 billion shares, with the choice to sell 15 per cent in an overallotment option. All these considered, Bank of Beijing could generate as much as RMB25.9 billion ($4.1 billion) based on its stock price for 30 April 2014.
For its planned IPO in 2015, the bank has selected Goldman Sachs Group and Morgan Stanley. An official announcement has yet to be made regarding this deal.
When the IPO is completed, Bank of Beijing will be the fifth Chinese bank to go public since October 2013. The latest was China Cinda Asset Management in November 2013, which managed to raise $2.8 billion. Because of the rise of bad debt, many local banks have been going the IPO route in HOng Kong to raise money to replenish their funds.
