China Cinda Asset Management to raise USD2.45 billion in Hong Kong Stock Exchange listing
Beijing's China Cinda Asset Management Co. Ltd. is planning to raise around USD2.45 billion in an initial public offering (IPO). The listing will take place in the Hong Kong Stock Exchange.
Reuters, citing a report by the International Financing Review (IFR), said that Cinda will offer 5.3 billion shares priced at HKD3.00 to HKD3.58 apiece. The deal will give the company a valuation of HKD18.97 billion (USD2.45 billion).
Cinda is one of the four asset management companies established by China's Finance Ministry in the late 1990s. It was created to buy bad debts from commercial state-owned bank China Construction Bank, its profile said.
Reuters previously reported that Cinda managed to make a net profit of CNY7.2 billion (USD1.2 billion) in 2012, a rise of 6% over the previous year. The asset management business has stakes in the Aluminum Corporation of China and the China Gezhouba Group.
Investment banks Bank of America Merill Lynch, Credit Suisse AG, Goldman Sachs &. Co., Morgan Stanley and UBS AG were hired as joint global coordinators for the IPO, Reuters said.