China’s postal savings bank sells stake ahead of IPO
One of the most anticipated initial public offerings in Asia, the Postal Saving Bank of China, is expected to launch in Hong Kong next year.
Already expected to raise anywhere from $10 billion to $20 billion, many high -profile private investors are trying to get in on the deal ahead of time.
And it looks like they are succeeding. A group of investors are expected to announce the sale of a 15% stake in the state-owned company to a group of investors for about $8 billion, IFR reported on Wednesday citing people familiar with the plans.
UBS bought the largest share at $2 billion and placed some of the shares with buyers including Hong Kong tycoons, said IFR, a Thomson Reuters publication.
The other pre-IPO investors include Singapore’s state investment company Temasek Holdings, JPMorgan and the International Finance Corp, a unit of the World Bank, IFR reported
Over the years, China has actively brought in strategic partners at its large state-owned banks before their IPOs to help strengthen management practices and investor confidence, said the Wall Street Journal.
Postal Savings Bank with 40,000 branches across the country is currently a wholly owned unit of China Post Group, which is owned by the country’s Ministry of Finance.