China CITIC Bank, the country's seventh largest commercial bank,
plans to go public on both the Chinese mainland and in Hong Kong at
the end of April this year, raising US$2.8 billion to 3 billion,
the Beijing-based Economic Observer reports.
The bank won approval to list on the Hong Kong stock exchange
last week and it was waiting for approval by the China Securities
Regulatory Commission (CSRC) to go public on the mainland A-share
market. The CSRC will audit the bank application's next week.
According to the plan, the bank will issue eight billion shares,
but the share price is yet to be announced.
By listing on the mainland and on the Hong Kong stock markets,
the bank aims to strengthen corporate governance in line with
international practices and raise more capital.
Analysts believe China's fast economic growth will bring
benefits to the bank's development. An agreement was signed between
the bank and Spanish banking group Banco Bilbao Vizcay Argentaria
(BBVA) at beginning of this year, which is also expected to boost
CITIC Bank's business.
BBVA spent 4.885 billion yuan to purchase a 4.83 percent stake
in China CITIC Bank.
"Most large-and medium-sized enterprises, especially financial
institutions like the Industrial and Commercial Bank of China, have
opted for dual listing as their first choice and the CITIC Bank
will not be an exception," Kong Dan, board chairman of the CITIC
Group, was quoted as saying in earlier reports.
The bank had 689.5 billion yuan (US$88.4 billion) in assets at
the end of September last year, with pre-tax profits of 5.7 billion
yuan, according to the bank's report for the third quarter last
year.
Its capital adequacy ratio (CAR), the measure of its own capital
in proportion to its outstanding loans, was 9.18 percent, while its
non-performing loan ratio was 2.79 percent.
The previously wholly state-owned CITIC Bank was transformed
into a joint-stock company and renamed CITIC Bank Co. Ltd. in
December last year. It has more than 400 branches across the
country.
(Xinhua News Agency March 26, 2007)