Guangfa Bank needs 'good window' for $5.5b IPO

Updated: 2011-08-11 13:52


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SHANGHAI - China's Guangfa Bank, previously known as Guangdong Development Bank, is waiting for a "good window" to launch its 35 billion yuan ($5.5 billion) dual-listing in Hong Kong and Shanghai, Reuters reported.

The Chinese lender, part-owned by Citigroup Inc, initially planned to launch the initial public offering in the third quarter of this year.

"We are not in urgent need of capital. We just want to wait for a good window," Dong Jianyue was quoted as saying by the Dongfang Daily.

Guangfa Bank had picked 10 banks to manage the offering, Dong told local media in May.

A number of Chinese financial groups are planning to raise billions of dollars in Hong Kong and Shanghai via IPOs, including China Everbright Bank Co Ltd, New China Life and People's Insurance Company of China Group (PICC).

China Everbright Bank delayed its Hong Kong share offering worth about $6 billion, sources told Reuters last week, the latest casualty of a rout in global equity markets.

New China Life, in which Zurich Financial owns a 15 percent stake, had also aimed to launch its $4 billion dual-listing in Hong Kong and Shanghai by as early as September.

State-owned PICC, one of the country's largest insurers, plans to raise $5-6 billion in an initial public offering in Hong Kong and Shanghai, IFR, a Thomson Reuters publication, reported last month.