Postal Savings Bank may have IPO for 2016

Postal Savings Bank of China is preparing for a possible IPO in early 2016, Financial Times reported on Monday.

The State-owned bank's IPO may raise between $10 billion to $25 billion and become one of the world's largest IPOs after Alibaba's record $25 billion offering in 2014.

With 40,000 branches in total and mainly focusing on rural households, Postal Savings Bank has a bigger network than other famous State-owned banks including Industrial and Commercial Bank of China.

With total deposits of as much as $800 billion, the State-owned bank invests in Chinese government bonds, the interbank market, and issues loans to small and medium-sized companies as well as agriculture households.

Ant Financial, an affiliate of Alibaba, is one of the possible investors but the company declined to comment. Ant Financial provides micro finance service in China.