BNP Paribas to cut China bank stake after IPO

16 July 2007

BNP Paribas has confirmed that its stake in Bank of Nanjing will drop from 19.2 per cent to 12.6 per cent after the Chinese bank has embarked on its initial public offering.

However, the French bank stated that its current partnership would be unaffected by the impending floatation.

Last week Bank of Nanjing confirmed that it would be selling 630 million shares for between $1.30 and $1.45 a share.

Since then it has announced that it has raised $90 million through the sale of 630 million A-shares prior to it impending listing on the Tokyo Stock Exchange.

The Chinese bank said that 157.5 million A-shares were sold to institutional investors, while the remaining 472.5 million shares were picked up by retail buyers.

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