Back to all announcements

China Citic Bank to make Hong Kong IPO

China Citic Bank looks likely to follow the lead of its larger Chinese rivals in making an Initial Public Offering (IPO) in Hong Kong, worth an estimated $2 billion.

The move follows Bank of China's Hong Kong IPO last week, which saw investors clamour to buy shares, resulting in $9.7 billion being raised by the bank in the biggest ever IPO by a Chinese company, and the world's largest since 2000.

Beijing-based China Citic Bank, China's seventh largest money lender, has enlisted the help of major securities firms including Citigroup and HSBC Holdings to join Lehman Brothers Holdings in facilitating the selling of the stock, which will be made available to Hong Kong residents.

According to unnamed sources quoted by Bloomberg news, the bank wanted to issue the IPO in order to raise much needed funds to address a capital shortfall and allow it to compete with its much larger domestic competitors, with an increase in personal wealth in China leading to a massive increase in the demand for private banking services.