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China's Postal Savings Bank may file for US$8b HK IPO next week: sources

Friday, June 17, 2016 - 11:27
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China's Postal Savings Bank may file for a Hong Kong IPO worth up to US$8 billion next week, people close to the deal said, in what is expected to be the world's biggest listing of the year.

[HONG KONG] China's Postal Savings Bank may file for a Hong Kong IPO worth up to US$8 billion next week, people close to the deal said, in what is expected to be the world's biggest listing of the year.

State-owned Postal Savings Bank of China 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 offering have not been formally announced.

The deal could raise between US$7 billion and US$8 billion, the people said, surpassing by far the biggest IPO so far in 2016, a US$2.6 billion deal from Danish utility Dong Energy.

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

"Any large deal that offers a lot of liquidity to investors will attract a lot of attention," said one of the people close to the deal.

Pension funds, global asset managers and other institutional investors prefer to invest in large offerings because they can more easily add to their positions or exit their bets in stocks that trade more actively.

The Wall Street Journal earlier reported that the bank planned to file in the next two weeks for the IPO.

REUTERS