China Everbright Bank plans IPO next summer
Updated: 2007-12-05 14:42
China Everbright Bank plans an initial public offering next June or July on a stock exchange that has yet to be determined, the China Securities Journal reported Wednesday.
"Whether the bank will list in Hong Kong or on the Chinese mainland is still under discussion," the newspaper said, citing Everbright Group chairman Tang Shuangning.
Tang also said that Everbright Securities plans to issue 520 million A-shares at the beginning of next year. The listing of the Shanghai-based securities firm would pave the way for group reforms, he said.
Last month, State-owned Central Huijin Investment Co injected 20 billion yuan (US$2.67 billion) into Everbright Bank to improve its financial position ahead of a listing. Huijin currently holds 70 percent of the bank's shares.
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"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," Tang was quoted as saying.
After these steps are taken, Everbright Financial Holding Co -- the parent company of both Everbright Bank and Everbright Securities -- will officially open, raise more money, acquire other financial firms and seek to go public, he added.
Huijin will be the controlling shareholder of the holding company.
Everbright Bank posted a net profit of 3.97 billion yuan in the first three quarters of the year. "Full-year net profit is expected to be nearly five billion yuan, compared with 2.79 billion yuan in 2006," Tang said last month.
Tang also estimated the non-performing loan ratio, standing at 5.7 percent at the beginning of November, to be lower than five percent by the end of the year.
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