China Everbright Bank plans IPO next summer
Updated: 2007-12-05 14:42
China Everbright Bank plans an initial public offering next June or July on a stock exchange that has yet to be determined, the China Securities Journal reported Wednesday.
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Tang also said that Everbright Securities plans to issue 520 million A-shares at the beginning of next year. The listing of the Shanghai-based securities firm would pave the way for group reforms, he said.
Last month, State-owned Central Huijin Investment Co injected 20 billion yuan (US$2.67 billion) into Everbright Bank to improve its financial position ahead of a listing. Huijin currently holds 70 percent of the bank's shares.
But the capital injection did not entirely resolve the bank's bad debt situation, and Everbright still had a loss of three billion yuan to make up by the end of last month.
"Before listing, Everbright Bank will first make up its historical losses, dispose of its non-performing assets, issue bonds to replenish its capital and bring in strategic investors," Tang was quoted as saying.
After these steps are taken, Everbright Financial Holding Co -- the parent company of both Everbright Bank and Everbright Securities -- will officially open, raise more money, acquire other financial firms and seek to go public, he added.
Huijin will be the controlling shareholder of the holding company.
Everbright Bank posted a net profit of 3.97 billion yuan in the first three quarters of the year. "Full-year net profit is expected to be nearly five billion yuan, compared with 2.79 billion yuan in 2006," Tang said last month.
Tang also estimated the non-performing loan ratio, standing at 5.7 percent at the beginning of November, to be lower than five percent by the end of the year.
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