Beijing-based China International Capital Corp Ltd (CICC), one of the country's top investment banks, will submit an application to Hong Kong Exchanges and Clearing Ltd for a $1 billion IPO that may be launched in October, the Wall Street Journal reported on Monday.
A public listing would provide an exit channel for CICC's major shareholders, which include KKR & Co LP and TPG Capital LP, two private-equity firms based in the US, according to the report, which cited unidentified sources.
Sherry Tan, executive director of CICC's corporate communications department, declined to comment when contacted by the Global Times on Monday.
Since August 2014, market rumors have circulated that CICC was planning an IPO in Hong Kong to raise $3 billion. But the resignation last October of CEO Zhu Yunlai, the son of China's former premier Zhu Rongji, forced the IPO to be put on hold, analysts said.
CICC announced on June 1 that it had completed the registration procedures to transform itself from a limited liability company into a joint stock limited company, a move that is usually regarded as a precursor to an IPO. Under China's securities laws, limited liability companies may not list on the stock market.
Founded in 1995 as a joint venture between Morgan Stanley and China Construction Bank Corp, CICC has expanded into many financial segments.
Its largest shareholder is now Central Huijin Investment, an investment arm of China Investment Corp, a sovereign wealth fund. Central Huijin holds a 43.17 percent stake in CICC.
Three foreign institutions - Government of Singapore Investment Corp, TPG and KKR - hold stakes of 16.35 percent, 10.35 percent and 10 percent, respectively, according to CICC's annual report issued in April.
CICC achieved a net profit of 1.1 billion yuan ($177.2 million) in 2014, up from just 376 million yuan in 2013, according to the annual report.
CICC ranked 13th in arranging domestic equity sales in 2014, Bloomberg reported on May 17.
In June, a domestic competitor of CICC, Guotai Junan Securities Co, got listed on the Shanghai Stock Exchange after raising 29.7 billion yuan.
