PSBC IPO biggest of the year

The Postal Savings Bank of China (PSBC) has been listed on the Hong Kong Stock Exchange this week.

In a ceremony the PSBC President, Li Guohua and Lv Jiajin struck the bronze gong at the Hong Kong Stock Exchange on Wednesday, 28th September. This is the biggest Initial Public Offering on the global capital markets this year – and the biggest since Alibaba’s IPO.

In a statement issued, China Post said: “On September 27, PSBC announced the results from global sales of its H shares, some 12,106,588,000 in the IPO, set at 4.76 Hong Kong dollars (US$0.61) per share. A total of 56.6 billion Hong Kong dollars (US$7.3 billion) was raised. The total market value of PSBC rose to 384.1 billion Hong Kong dollars (US$49.5 billion).

“Following the largest private equity financing in China last year, which totaled 45.1 billion yuan (US$5.8 billion), PSBC once again created a new fundraising record in the world banking industry.”

PSBC’s Li commented: “Being listed on the stock market in Hong Kong is an important step in reform and internationalization for PSBC.

“It shows that majority of investors highly recognize PSBC’s intrinsic value. We will adhere to strategic positioning, improve our service level and strive to build a quoted company with unique competitiveness.”

Floating the savings bank is part of a process to drive efficiency into the bank and help it raise capital. Due to the volatility of global markets the company has been taking its time before the floatation but the move now seems to have been successful.

 
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