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December 10, 2007 |
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CHINA EVERBRIGHT BANK: Plans IPO in June or July 2008 China Everbright Bank plans an initial public offering in June or July 2008 on a yet-to-be-determined stock exchange, China Daily reports, citing the China Securities Journal. "Whether the bank will list in Hong Kong or on the Chinese mainland is still under discussion," the newspaper wrote, quoting Everbright Group Chairman Tang Shuangning. According to the report, Mr. Tang also said that Everbright Securities plans to issue 520 million A-shares at the beginning of 2008. He believes that the listing of the Shanghai-based securities firm would pave the way for group reforms. China Daily recounts that China Everbright got a CNY20-billion (US$2.67 billion) capital injection in November from Central Huijin Investment Co, an arm of China's sovereign wealth fund, in order to help improve its financial position ahead of a listing. Huijin currently holds 70% of the bank's shares. The capital injection, however, did not entirely resolve the bank's bad debt situation, China Daily notes. Everbright, the report explains, still needs to turn around from a CNY3-billion loss. "Before listing, Everbright Bank will first make up its historical losses, dispose of its non-performing assets, issue bonds to replenish its capital and bring in strategic investors," Mr. Tang was quoted as saying. Headquartered in Beijing, China, China Everbright Bank Company -- http://www.cebbank.com/ -- is the first state-owned commercial bank with shares held by international financial institutions. Everbright Bank is 21%-owned by Hong Kong-listed China Everbright Ltd, an Everbright Group unit. The Asian Development Bank is the only foreign stakeholder, with 2%. The Troubled Company Reporter-Asia Pacific stated on Aug. 9, 2007, that China has approved mid-sized lender China Everbright Bank's plan for financial restructuring, paving the way for a capital injection and eventual listing. China Everbright Bank is saddled with debts partly because of its takeover of the troubled China Investment Bank in the late 1990s. |
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