China Everbright Bank eyes strategic investors

SHANGHAI, July 24 (BestGrowthStock) – China Everbright Bank plans
to place out about half of its planned initial public offering
to strategic investors, the official Securities Times reported
on Saturday.

Everbright Bank, China’s 11th biggest bank by assets,
planned to sell up to 6.1 billion yuan-denominated A shares on
the Shanghai stock exchange later this year, the company said
in a draft prospectus last Thursday.

The bank, controlled by Central Huijin, investment arm of
China’s sovereign wealth fund, hopes the strategic placement
will help reduce the impact of the IPO on the domestic stock
market, the newspaper reported, citing an identified source
with the bank.

The Shanghai Stock Exchange Composite Index (.SSEC: ) fell
nearly one-third in the first half of the year, making it one
of the worst performers globally. Weak sentiment was due partly
to a surge of share offerings on the market, soaking up
liquidity.

The China Securities Regulatory Commission (CSCR) is set on
Monday to review the IPO, which could raise the bank about 20
billion yuan ($2.95 billion). [ID:nTOE66L07M]

The lead underwriters for the IPO are China Jianyin
Investment Securities, Shenyin & Wanguo Securities Co, and
China International Capital Corp (CICC), in which Morgan
Stanley (MS.N: ) holds a stake that it is planning to sell.

Stock Market Investing

($1=6.780 Yuan)
(Reporting by Soo Ai Peng, Editing by Ron Popeski)

China Everbright Bank eyes strategic investors