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[HONG KONG] China Development Bank Financial Leasing Co, an arm of the nation's biggest policy lender, and existing investors will seek as much as US$980 million from a Hong Kong initial public offering, people familiar with the matter said.
CDB Leasing and its owners plan to offer a combined 3.1 billion shares at HK$1.90 to HK$2.45 apiece, according to the people, who asked not to be identified as the information is private.
The price range values the Shenzhen-based aircraft, infrastructure and ship lessor at 0.9 times to 1.1 times its estimated 2016 book value, the people said.
The offering will be Hong Kong's second major listing from a leasing company this year after BOC Aviation Ltd's US$1.1 billion IPO last month.
First-time share sales in the city have raised US$5.6 billion this year, less than half the US$14.4 billion of deals priced during the same period in 2015, data compiled by Bloomberg show.
CDB Leasing plans to start taking investor orders for the IPO on Tuesday, the people said. Bank of America Corp, Citic CLSA Capital Markets Ltd and Deutsche Bank AG are joint sponsors of the offering, according to a June 12 Hong Kong stock exchange filing.
A Hong Kong-based spokeswoman for CDB Leasing declined to comment. IFR reported the price range earlier Monday in Hong Kong, citing unidentified people.