Bank of Jiujiang seeks $500 million (£408.00 million) IPO in Hong Kong

Bank of Jiujiang

Bank of Jiujiang Co., a lender in eastern China’s Jiangxi province, plans to seek about $500 million (£408.00 million) in a Hong Kong initial public offering, according to people with knowledge of the matter.

Bank of Jiujiang, based in a city on the southern banks of the Yangtze River, has started reaching out to investment banks about the potential listing, the people said. It aims to list in the second half of 2017, according to the people, who asked not to be identified as the information is private.

The lender follows other regional banks, including Guangzhou Rural Commercial Bank Co. and Jilin Jiutai Rural Commercial Bank Corp., in seeking a Hong Kong listing to boost its profile and raise funds for expansion. Financial institutions completed $18.2 billion (£14.85 billion) of first-time share sales in the city last year, accounting for 72 per cent of fundraising from new listings in 2016, data compiled by Bloomberg show.

Details could change, and there’s no certainty the deliberations will lead to a share sale, one of the people said. Multiple calls to Bank of Jiujiang’s general line and its board of director’s office went unanswered. An e-mail sent to a general inquiry address listed in the company’s annual report was returned as undeliverable.

Shareholders of Bank of Jiujiang, which was founded in 2000, include the local government, state-owned Beijing Automotive Group Co. and Industrial Bank Co., its website shows. The lender’s net income fell 0.6 per cent in 2015 to 1.78 billion Yuan (£209.73 million), according to its annual report.

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The author Paul