China’s PSBC raises $7.4b in Hong Kong IPO

AFP, HONG KONG: Postal Savings Bank of China (PSBC) is set to raise $7.4 billion in its Hong Kong initial public offering, which is expected to be the world’s biggest flotation this year, reports said yesterday.
The listing is also poised to be the biggest since Chinese internet giant Alibaba floated in New York in 2014, raising $25 billion.
But the $7.4 billion valuation misses the company’s previously hoped-for $8.1 billion mark as analysts say demand for the stock is tepid.  
PSBC will sell 12.1 billion shares at HK$4.76 ($0.61) each when it floats on the Hong Kong exchange on September 28, according to Bloomberg, citing people familiar with the matter. 
That comes in at the lower end of the bank’s original price range, which valued the shares between HK$4.68 and HK$5.18. Analysts attribute the lukewarm interest to the recent flat performance of large Chinese financial firms on Hong Kong’s bourse. 
“In the last year or so, most of these big financial firms on their debut at best went up five per cent, and a lot of them are still trading underwater,” financial analyst Jackson Wong told AFP.

Chinas PSBC raises $7.4b in Hong Kong IPO

AFP, HONG KONG: Postal Savings Bank of China (PSBC) is set to raise $7.4 billion in its Hong Kong initial public offering, which is expected to be the worlds biggest flotation this year, reports said yesterday. The listing is also poised to be the biggest since Chinese internet giant Alibaba floated in New York in 2014, raising $25 billion. But the $7.4 billion valuation misses the companys previously hoped-for $8.1 billion mark as analysts say demand for the stock is tepid. PSBC will sell 12.1 billion shares at HK$4.76 ($0.61) each when it floats on the Hong Kong exchange on September 28, according to Bloomberg, citing people familiar with the matter. That comes in at the lower end of the banks original price range, which valued the shares between HK$4.68 and HK$5.18. Analysts attribute the lukewarm interest to the recent flat performance of large Chinese financial firms on Hong Kongs bourse. In the last year or so, most of these big financial firms on their debut at best went up five per cent, and a lot of them are still trading underwater, financial analyst Jackson Wong told AFP.