Bank of Changsha Sells Founder Securities Stake for IPO
CIISF | Quote | Chart | News | PowerRating -- Bank of Changsha, which will start preparing the listing documents soon, has put 30 million shares of Founder Securities Co. on auction via Hunan Assets and Equity Exchange, as commercial banks cannot take stake in a securities broker.
The initial bidding price of such a stake has been fixed at CNY 8 per share. This March, the city-level commercial lender Bank of Changsha employed CITIC Securities Co. as the listing advisor. According to relevant data, the capital adequacy ratio and the bad assets ratio of Bank of Changsha stood at 12.08% and 1.98% respectively at the end of 2008; in the year, the city bank made profits of CNY 586 million, thus meeting the regulatory requirement to make profit for consecutive three years before getting listed.
Also, Founder Securities has entered the tutorship period before launching the initial public offering. With registered capital of CNY 1.65 billion, Founder Securities has Founder Group as the biggest shareholder with a 56.59% stake.
Available information showed that over 40 city commercial banks of China have had the listing plans. They include Bank of Shanghai, Bank of Wenzhou, Bank of Chongqing, Bank of Nanchang, Bank of Jiujiang, and so forth.
These years, Chinese city commercial banks have made great progress. As at the end of 2008, the total assets of China's city commercial banks stood at CNY 4.5 trillion, an increase of 32.02% over the yearend of 2007; and the average capital adequacy ratio of these banks stood at 12.58% by last yearend, up 2.79 percentage points from the previous year. As of the end of this September, up to 31 city commercial banks of the country realized trans-regional operations.
Huhhot City Commercial Bank has been approved to alter its name into Bank of Inner Mongolia, thus to turn into a provincial-level lender. The government of Inner Mongolia Autonomous Region has injected CNY 300 million into the lender, thus to become the biggest shareholder in the latter with a total of 300 million shares.
With a history of 10 years, Bank of Inner Mongolia had total assets of CNY 15.79 billion as at the yearend of 2008, with total deposits of CNY 14.79 billion. Over last year, the bank achieved book profits of CNY 166 million, up 24.69% compared with 2007. By the end of 2008, the capital adequacy ratio of it stood at 10.04%.
(USD 1 = CNY 6.82)
Source: www.p5w.net (November 19, 2009)
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