Xiamen International Bank, founded nearly four decades ago by local and foreign investors, is considering an initial public offering in Hong Kong that could raise about $1.3 billion, according to people familiar with the matter.
mentioning people who asked not to be identified; Because the information is private, the Chinese lender is working with advisors to prepare for the share sale, which could take place as soon as next year, one of the sources said the state-backed bank could submit an initial prospectus as early as the first quarter of next year.
He added that considerations were still at an early stage, and that details of the offer such as size and timing could change. A representative for Xiamen International Bank did not immediately respond to requests for comment.
If successful, Xiamen International Bank would be the first bank to list in the Asian financial center since China’s Dongwan Rural Commercial Bank, which raised about $1.2 billion in its initial public offering in September 2021, according to data compiled by Bloomberg. Hong Kong has not seen since Now only a handful of initial public offerings worth more than $1 billion have passed, as the economic outlook for China and fears of a global recession weigh on the broader stock market.
Founded in 1985 in coastal Fujian Province, Xiamen International Bank is China’s first bank jointly owned by domestic and overseas shareholders, according to its website, and became a wholly owned commercial bank for local investors in 2013 after restructuring. Its largest shareholder is Fujian Photo Corporation. For investment, controlled by Fujian Provincial Government.
Xiamen International Bank has more than 40 main branches and subsidiaries in cities such as Beijing, Shanghai, Zhuhai, Xiamen and Fuzhou, and also has wholly owned subsidiaries in Hong Kong and Macao, including Xiamen International Investment Co., Ltd. (Hong Kong) and Lusu International Banking Limited. The bank’s net income reached 4.2 billion yuan ($604 million) in 2021, down 5.6% from a year earlier, according to its annual report, and its full-year net interest income rose 0.9% to 13.9 billion yuan.