Postal Saving Bank of China 1658

[winston]

not vested

Postal Savings Bank aims for $62b

by Gloria Song

State-owned Postal Saving Bank of China plans to raise US$8 billion (HK$62.1 billion) through an initial public offering in Hong Kong within this month.

If successful, it would be the biggest IPO so far this year.

Postal Saving Bank is the sixth largest commercial bank in the mainland and the last unlisted commercial bank.

It has total assets of 6.8 trillion yuan (HK$8 trillion) and a nonperforming loan rate of 0.82 percent.

In January, the bank selected five investment banks for arrangements about the IPO.

Its former chairman Tao Liming, who pleaded guilty to corruption, reportedly died in custody on Monday. He had been charged with bribes, embezzlement and other offences.

Sources said the firm may submit relevant documents as early as this week, with the listing subject to changes.

Source: The Standard

[winston]

Postal bank may file for IPO in HK next week

POSTAL Savings Bank of China, the nation’s biggest lender by number of branches, may file for a Hong Kong IPO worth up to US$8 billion next week, people close to the deal said, in what is set to be the world’s biggest listing of the year.

While the offering has come down in size from an up to US$15 billion mooted in December due to a slide in Hong Kong stocks, it is expected to draw much investor interest by virtue of its huge customer base and as it is considered to have a much lower ratio of bad loans than rivals.

PSBC, the last of China’s major state-owned banks to list, saw big name investors such as Alibaba’s Ant Financial unit and Canada Pension Plan Investment Board invest in a fundraising round late last year that valued it at about US$41 billion.

The bank is still waiting for some final approvals before deciding on the exact day of the filing, said the people, who declined to be identified as details of the IPO have not been formally announced.

The deal could raise between US$7 billion and US$8 billion, they said, surpassing the biggest IPO so far this year, a US$2.6 billion deal from Danish utility DONG Energy.

PSBC, which has about 500 million clients or nearly half of China’s population, did not immediately reply to a request for comment on its IPO plans.

The deal would also give a much needed boost to IPO activity in Hong Kong, which like other major financial centers has seen new listings decline amid concerns over the US Federal Reserve raising interest rates, a slowdown in China and the possibility of the UK voting to leave the European Union next week.

While most large Chinese banks including the Industrial and Commercial Bank of China and the Agricultural Bank of China trade at prices below their book value, PSBC plans to sell shares close to book value, the sources added.

“You could argue their (loan) portfolio is better than other banks, so asking for book value would be a fair price,” a person close to the deal said.

PSBC, which has over 40,000 branches nationwide, was set up as a deposit-taking bank in 2007.

Source: Agencies

[winston]

China's Postal Savings Bank may file for HK IPO

Source: Straits Times

http://www.straitstimes.com/business/co ... for-hk-ipo

[behappyalways]

china-s-postal-savings-bank-handle-with-care

http://www.bloomberg.com/gadfly/article ... -with-care

[winston]

not vested

PSBC Reportedly to Start Roadshow Next Mon; Cornerstone Investors Buy 60-80% Shares

As Reuters cited sources, Postal Savings Bank of China will start the roadshow on next Monday (5 September), raising US$8-10 billion proceeds.

This would be the stock raising the largest amount of proceeds after Alibaba, and the cornerstone investors have subscribed to 60-80% of shares.

The price of PSBC is expected to be determined on 20 or 21 September, and will be listed on 28 September.

Source: AAStocks Financial News

[winston]

Postal bank launches IPO roadshow

by Carrie Chen

State-owned Postal Savings Bank of China yesterday kicked off the roadshow for its public offering as it aims to price shares on September 20 or 21, reported Reuters publication IFR.

The mainland's sixth largest commercial bank, which aims to raise US$8 billion (HK$62.4 billion) to US$10 billion, said its non-performing loan ratio dropped to 0.78 percent by end-June, from 0.8 percent six months earlier.

It said the fall came after it bolstered risk management of loans, increased collections and sold off non-performing loans.

Total assets at end-June stood at 7.97 trillion yuan (HK$9.25 trillion), up by 9.3 percent, resulting from an expansion of its loan and investment portfolios and deposits with the central bank.

Net interest income fell by 6.9 percent to 81.6 billion yuan in the first half from 87.7 billion yuan a year earlier. The decline came as net interest margin dipped to 2.3 percent from 2.81 percent a year earlier.

Net interest spread slid to 2.34 percent in the first half from 2.74 percent last year, according to its listing prospectus.

It attributed the fall mainly to the reduction of the benchmark interest rate by the People's Bank of China and the higher deposit interest rate that it offered clients in response to market competition.

The lender obtained in June the China Banking Regulatory Commission's approval to issue Tier 2 capital bonds of up to 50 billion yuan. The net proceeds will be used to replenish its capital base.

If the IPO is on, it will mark the first dual-currency listing as it issues shares in Hong Kong dollar and yuan so mainland state financial institutions need not convert foreign exchange to buy into the IPO.

Source: The Standard

[winston]

not vested

<IPO News>Postal Savings Bank of China Said to Start IPO Next Week to Raise $78B

Postal Savings Bank of China (PSBC) has commenced its roadshow yesterday (5 September).

The bank will start public offering starting from 14 September to 20 September and the shares will be listed on 28 September.

The capital raising scale reaches $62.4 billion to $78 billion, which is expected to be the IPO with largest scale of capital raising in Hong Kong this year.

Reportedly, 60-80% of the bank's new shares have been subscribed by cornerstone investors.

The bank has introduced ten strategic investors in the second half of 2015, such as UBS, CHINA LIFE (02628.HK), CHINA TELECOM (00728.HK) and TENCENT (00700.HK) subsidiary.

Source: AAStocks Financial News

[behappyalways]

China's PSBC launches biggest share sale of the year
http://www.bbc.com/news/business-37346563

[winston]

not vested

Postal bank launches $63b IPO

by Carrie Chen

State-owned Postal Savings Bank of China (1658) opens its retail book today, aiming to raise up to HK$63 billion to become the world's biggest share sale after Alibaba's debut in 2014.

The Beijing-based lender plans to sell 12.1 billion shares at an indicative price range of HK$4.68 to HK$5.18 apiece. Investors need to pay at least HK$5,232.20 for one board lot of 1,000 shares. Its international tranche is reportedly oversubscribed.

The bank will price its offer on September 21, then start trading on September 28.

President Lu Jiajin said due to strategic demand, all cornerstone investors were from the mainland.

He added the bank had already brought in six foreign investors.

Dividend payouts will be no less than 10 percent after listing, said chairman Li Guohua, adding that parent company China Postal Group - which owns a stake of 83 percent - will not intervene in daily operation.

Li said the loan-to-deposit ratio was lower than 40 percent, while the four largest state-owned commercial banks in China average 70 percent.

However, it also has a lower non- performing loan ratio of 0.81 percent.

Li said the bank has room to develop its wealth management, asset management and investment businesses as they have just been started up.

It used to focus on settlements and payments.

As for its lending to China Railway Group, which reached 240 billion yuan (HK$279 billion), accounting for a high proportion of the bank's loan portfolio worth 2.6 trillion yuan, Lu said the concentration was high because it provides high return with low risk.

He said the bank has already received approval from the China Banking Regulatory Commission, and emphasized that it is considered a high quality asset.

Meanwhile, Hang Seng Bank (0011) has rolled out preferential margin financing for Postal Savings Bank's IPO, with interest per annum as low as 0.48 percent.

Additionally, loan down payments can be as little as HK$54,000.

What's more, mainland broker China Merchants Securities plans to sell up to 1.18 billion shares, with net proceeds to be used for business expansion.

Source: The Standard

[winston]

not vested

Postal bank float to raise HK$58b

by Carrie Chen

Postal Savings Bank of China is poised to raise HK$57.72 billion in an initial public offering in SAR, that will be the world's biggest first-time shares sale this year, people familiar with the matter said.

The Beijing-based lender plans to sell 12.1 billion shares at HK$4.76 apiece, below the midpoint of a marketed range, they said. The bank offered the shares at HK$4.68 to HK$5.18 each.

The first-time shares sale would be the largest globally since Alibaba Group priced a US$25 billion (HK$195 billion) New York offering in September 2014. Postal Savings Bank would have a market value of US$49.5 billion, more than Deutsche Bank but less than US banks like Goldman Sachs.

The largest IPO so far this year was Danish utility Dong Energy's US$3 billion offering in June. Investors may be deterred by a valuation higher than the bank's peers, and limits on the gains to be made from having the biggest branch network of any Chinese bank, according to Li Bin, a Shanghai- based analyst at Capital Securities Corp.

"Chinese banks are increasingly competing online; the value of having an extensive brick and mortar branch network has been diminished significantly compared with 10 years ago," Li said.

The price range for the shares offer valued the lender at 1 to 1.1 times its net assets as of the end of March. Chinese lenders listed in Hong Kong trade at an average 0.87 times book value.

Source: The Standard