China Everbright Bank to relaunch HK IPO

BEIJING -- China Everbright Bank will resume its initial public offering in Hong Kong by issuing up to 12 billion H-shares, the bank announced Wednesday.

Up to 10.5 billion shares will be issued through a public offering and no more than 1.5 billion shares through over-allotment for bookrunners, with a face value of 1 yuan ($0.16) per share, the mid-sized lender said in a statement filed with the Shanghai Stock Exchange.

The bank will kick off the IPO "at an appropriate time," according to the statement.

The capital raised from the H-share IPO will be used to replenish the bank's core capital, lift its capital adequacy ratio and improve its capabilities to guard against risks and make profits, the statement said.

According to a December statement by China Banking Regulatory Commission, mid-sized lenders should maintain its CAR at no less than 8.5 percent by the end of 2013. China Everbright said it had a core capital adequacy ratio of 8.24 percent by the end of September 2012.

Headquartered in Beijing, China Everbright planned to raise $6 billion by landing a Hong Kong IPO in 2011 but abolished the plan later that year due to the sluggish economy. In May 2012, it again filed an IPO plan but postponed it.

The bank's net profits hit 23.6 billion yuan in 2012, up 30.74 percent year on year, according to a preliminary report in January.

Its stock listed on the Shanghai bourse dipped 0.93 percent to 3.19 yuan per share by 10:30 am Wednesday.