Bank of Shanghai plans to raise 10.7b yuan in IPO on mainland

[SHANGHAI] Bank of Shanghai Co plans to raise 10.7 billion yuan (S$2.2 billion) in its initial public offering in the city to boost capital.

The lender will sell shares at 17.77 yuan apiece, it said in a statement to Shanghai's exchange.

The bank's price-to-earnings ratio will be 8.26 after the sale, according to the filing. That compares with an average of about 8 for lenders listed on the mainland.

The Shanghai lender is one of a wave of smaller banks raising money to fund expansion as regulators close loopholes that allowed so-called shadow lending without extra capital and provisions.

The average capital adequacy ratio of China's 133 city commercial banks is lower than for the banking industry as a whole, the regulator said last month.

BLOOMBERG