Postal Savings Bank of China to raise A$9.26 billion before IPO
(28 September 2015 – Hong Kong) Postal Savings Bank of China Co. is closing in on an agreement to raise more than US$6.5 billion (A$9.26 billion) from investors ahead of a public offering, sources have told Bloomberg.
People close to the deal said UBS is seeking to invest about US$2.5 billion. DBS Group Holdings is buying about US$250 million of shares, while International Finance Corp. and JPMorgan Chase & Co. will also invest. Domestic investors include Alibaba, Tencent and China Life Insurance.
According to the article, Postal Savings Bank is selling about a 15 percent stake to outside investors.
The bank is still finalising the allocations for the group of Chinese and domestic investors, one person said. It plans to make an announcement as soon as next week, and the total allocation could rise to US$7 billion or more as commitments come in, the people said.
In January, Postal Savings Bank and DBS agreed to set up a joint venture consumer finance company, with DBS investing 120 million yuan (A$26.9 million) for a 12 percent stake.
Subscribe