China Everbright’s IPO could be HK’s biggest this year

Five more Chinese banks could also IPO in HK.

The Hong Kong Stock Exchange has granted permission to the China Everbright Bank to issue 12 billion shares with a face value of one yuan (US$0.16) overseas. The shares will be traded in the exchange after being approved by the China Securities Regulatory Commission.

China Everbright has been attempting to go public since June 2011. Poor market conditions, however, forced the bank to delay its IPO three times over the next two years. This changed when China's Ministry of Finance and the CSRC accepted the bank’s applications to go public in the H-share market last May.

China Everbright’s IPO will be the largest in Hong Kong this year if the bank goes public successfully. Analysts said its shares are likely to be traded at US$0.4 a share in Hong Kong and could help the bank to raise US$5.1 billion.

Other banks are following in China Everbright Bank's footsteps. The Bank of Chongqing has been preparing a Hong Kong IPO
and will begin accepting orders from investors next week. It plans to go public in November and raise up to US$600 million.

Media sources said Bank of Shanghai, Huishang Bank, China Guangfa Bank and Harbin Bank plan to IPO in Hong Kong.