Biz Scene: Grapevine

Clothier's IPO

Chinese clothing retailer Metersbonwe Group plans to raise around $500 million through an initial public offering as early as this year, Reuters reported yesterday, citing sources.

Metersbonwe, which says it is the biggest Chinese fashion chain with a market share of about 2 percent, has hired the Beijing-based investment banking joint venture of UBS AG as its IPO sponsor, the sources said.

Metersbonwe sells casual clothing targeting the 18-25 age group. Founded 12 years ago, it operates 2,000 stores nationwide.

Stock sale

GCL-Poly Energy Holdings Ltd, operator of power plants in China that sell the steam generated in the process, raised the maximum HK$1.18 billion from a Hong Kong stock sale.

GCL-Poly sold 288 million new shares at HK$4.10 each in the Hong Kong initial public offering, Bloomberg reported, citing sources who declined to be identified before an official statement.

It earlier marketed the shares at HK$3.30 to HK$4.10 each, according to a share sale document.

Insurer in talks

China's Ping An Insurance is in early talks to buy a stake in the biggest rural bank in South China's Guangdong Province, as the country's No 2 life insurer aims to expand its banking network, Reuters reported, citing sources.

Senior executives of Ping An, based in Shenzhen, Guangdong Province, had approached Guangdong Rural Credit Union several months ago about a possible stake purchase, said the sources, who declined to be identified.

Representatives of Ping An and Guangdong Rural held several rounds of talks, although no agreement has yet been reached, partly due to Guangdong Rural's complicated shareholding structure and its debt burden, the sources said.

(China Daily 11/07/2007 page15)