By Mao Lijun (China Daily)
Updated: 2007-09-11 09:48

Bank of Beijing said yesterday it will raise as much as 15 billion yuan (US$1.99 billion) in a Shanghai initial public offering (IPO).

The bank will sell 1.2 billion shares at 11.5 yuan to 12.5 yuan each, it said in a statement to the Shanghai Stock Exchange.

The lender said in the statement its equity issue will account for 19.27 percent of its enlarged stock base after it lists in Shanghai. Its stock was valued at 1.96 yuan per share before the listing and its assets totaled 263.98 billion yuan.

It said China Securities Co and CITIC Securities Co will underwrite the IPO.

Bank of Beijing plans to use funds raised in the offer to boost its risk control, profit-making and capital adequacy ratio, according to its prospectus.

The bank said it will also offer H shares after the A-share listing, but shareholders are yet to approve the pricing and timing.

The lender plans to sell 1 billion shares on the Hong Kong stock exchange, according to a source.

The bank posted a net profit of 550 million yuan in the first quarter this year. Its non-performing loan ratio was 3.34 percent and capital adequacy ratio 13.23.

Established in 1995, the bank has aggressively modernized in recent years. It has opened branches in Tianjin and Shanghai, and has won praise for its electronic banking service.

The listing follows a trend among China's city commercial banks. Bank of Nanjing and Bank of Ningbo raised a combined 11.07 billion yuan from their Shanghai IPOs in July.

China has 114 city commercial banks. Bank of Shanghai, Bank of Tianjin, Bank of Chongqing and Hangzhou City Commercial Bank also plan to go public.