Bank of Shanghai plans to raise 10.7 billion yuan ($1.6 billion) in its initial public offering which may possibly be the biggest IPO float this year in Shanghai's stock market, the lender said yesterday.
The state-owned bank will price its IPO shares at 17.77 yuan each, according to its filing to the Shanghai Stock Exchange.
The proposed IPO will surpass the record float of 7.24 billion yuan by Bank of Jiangsu in June. It might also cement the Shanghai market's global ranking of No. 2 by IPO proceeds so far this year of about US$10.5 billion, following Hong Kong's US$18.8 billion.
The Shanghai lender's listing followed several listings of smaller banks this year, as the stock market regulator closed loopholes that created the so-called shadow lending. Bank of Jiangsu, Bank of Hangzhou and three other rural commercial banks in Jiangsu Province have been listed so far this year.
Jin Yu, chairman of the Shanghai bank, said in a previous annual meeting of city commercial banks that the bank is eying a profit growth of 5-10 percent above the industry average.
The lender's profit in the January-September period is estimated at 10.8-11.1 billion yuan, it said separately yesterday.
