China’s Postal Savings Bank seeks up to US$8.1 bil in IPO

(Sept 13): Postal Savings Bank of China Co. is seeking as much as US$8.1 billion ($11 billion) in a Hong Kong initial public offering, which could become the world’s biggest share sale this year.

The Beijing-based bank is offering 12.1 billion shares at HK$4.68 to HK$5.18 apiece (82 cents to 91 cents apiece), according to terms for the deal obtained by Bloomberg on Tuesday. Cornerstone investors, who commit to hold their shares for six months, agreed to buy about US$5.9 billion of stock, accounting for 76% of the offering at the midpoint of the marketed range.

The price range values Postal Savings Bank at about 1 to 1.1 times its net assets at the end of March this year, a person with knowledge of the matter said, asking not to be identified as the information is private. Chinese lenders listed in Hong Kong trade at a median 0.88 times their latest book value, data compiled by Bloomberg show.

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