Chinese banks IPOs could raise $1.46bn

11 July 2007

Two Chinese banks could raise a total of $1.46 billion through initial public offerings, it has been reported.

After initial reports that Bank of Nanjing would be selling 700 million shares, a regulatory filing has revealed it will now sell 630 million shares on the Shanghai Stock Exchange.

The firm has set a price range of $1.30 to $1.45, meaning that up to $914 million could be raised.

Meanwhile, Bank of Ningbo could raise up to $0.5 billlion through the sale of 450 million shares in Shenzhen, at a price range of $1.05 and $1.21.

The share offers both follow the Chinese government granting approval for the banks to pursue business outside their home cities in 2005.

Last year Bank of Nanjing, which has a branch network of 60 outlets, posted a 62 per cent increase in annual profit.

Bank of Ningbo's earnings, meanwhile, were up by 34 per cent compared with 2005.