BEIJING, Chile (UPI) -- An initial public offering by China CITIC Bank Co., the country`s eighth largest in terms of assets, could raise up to $5.7 billion.
The IPO is planned simultaneously in Hong Kong and Shanghai, Xinhua reported Monday quoting sources.
The report said the Beijing-based bank, owned by China International Trust and Investment, plans to offer 2.3 billion new shares in Shanghai, representing a 6 percent stake, to raise up to $1.82 billion. It may sell an additional 4.89 billion shares, or a 12.8 percent stake, in Hong Kong to bring in $3.86 billion.
IPOs are doing well in China because investors want to benefit from the country`s booming economy.
'This is not a bargain price for stock in (CITIC). It leaves little room for future upside gains if it`s priced at the top end,' an analyst said.
Depending on the price, the IPO values CITIC Bank at 2.48 times to 2.81 times its estimated book value this year, the report said.
The lead underwriter for the IPO is China International Capital.
Source : http://news.monstersandcritics.com/business/news/article_1289157.php/China_bank_makes_IPO_offering
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