One of the lenders in Anhui, China, Huishang Bank Corp as well as its investors are expecting a windfall of as much as USD1.3 billion from its initial public offer in Hong Kong's stock exchange. This was confirmed by two people with direct knowledge on the matter.

The bank, which is based in Hefei, China together with a number of its shareholders have planned to offer 2.61 billion shares worth between HKD3.50 and HKD3.88 per share. This information came from sources that sought anonymity as the information is deemed private. The offering would include 2.5 billion new shares.

Many Chinese lenders are seeking to increase their capitalization through shares in Hong Kong's index as Chinese regulators have imposed a freeze order on its domestic initial public offer. This IPO stands to become the largest banking listing in the past three years, as confirmed by data obtained by Bloomberg News.

The bank would be using the IPO proceeds to bolster its core capital base, according to a term sheet dated October 21. Huishang is planning to set its final offer price by November 2, according to the documents submitted.