CITIC Bank raises $5.4bn from share offering

23 April 2007

State-owned CITIC Bank has announced its public share sale has raised $5.4 billion dollars.

The fresh investment, which ranks as the largest public offering worldwide this year, follows the sale of 2.3 billion A-shares at a price of 80 cents each and which were dually listed in Hong Kong and Shanghai.

Meanwhile, 4.9 billion H-shares in the territory's seventh-largest bank were sold for 71 cents each.

Spanish bank BBVA and CITIC International are thought to have bought a total of $1 billion worth of shares between them, so as to maintain their shareholding, while other investors included Mizuho and PICC Property and Casualty.

News of the offering comes after Industrial and Commercial Bank of China last year raised $21.9 billion from a share sale.

CITIC Bank is a domestic banking subsidiary of China's CITIC Group, whose stake drops to 64 per cent as a result of the deal.

In 2006, CITIC Bank, which has 446 branches, posted a net income of $7.4 billion.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development