China Bohai Bank closes in on USD 1bn+ IPO

China Bohai Bank expects to be admitted to trading on the Hong Kong Stock Exchange on 16th July with a market capitalisation of HKD 82.32 billion to HKD 86.30 billion (USD 10.62 billion to USD 11.13 billion).

The lender’s initial public offering (IPO) comprises the sale of 2.88 billion H shares at HKD 4.75 to HKD 4.98 apiece to raise between HKD 13.77 billion and HKD 14.34 billion.

Its pricing equates to unaudited pro forma adjusted net tangible assets of HKD 4.71 to HKD 4.75 per stock.

Zephyr, the M&A database published by Bureau van Dijk, shows 822 IPOs have been announced globally in 2020 to date and the lender’s will be the fifth-largest of the year so far.

China Bohai Bank claims to be the youngest nationwide joint-stock commercial lender in China and, after experiencing rapid growth during the 12 months ended 31st December 2019, ranked 178th out of the top 1,000 world banks last year.

In FY 2019, the company’s net profit rose 15.7 per cent year-on-year and weighted average return on net assets increased 13.7 per cent.

As of 31st December 2019, its business network comprised 245 outlets, including 33 tier-one locations, 30 tier-two, 127 sub-branches, 54 community and micro sub-offices and one representative site in Hong Kong.

China Bohai Bank’s corporate loans and advances rose by a compound annual growth rate (CAGR) of 16.4 per cent from CNY 343.40 billion (USD 48.44 billion), as at 31st December 2017, to CNY 465.20 billion, as at year-end 2019.

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The lender registered a 16.4 per cent CAGR for its personal loans over the same three-year period (31st December 2017: CNY 118.80 billion; 31st December 2018: CNY 167.80 billion; 31st December 2019: CNY 233.40 billion).

At year-end 2019, it had established cooperation relationships with over 100 internet platforms and, through these sources, recorded a total transaction volume of CNY 42.00 billion.

© Zephus Ltd

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