Banking

Minsheng Bank down 3.08% on H-share debut

(Xinhua)
Updated: 2009-11-27 09:42

China Minsheng Banking Corp fell 3.08 percent in its Hong Kong debut on Thursday after raising approximately HK$30 billion in the city's biggest initial public offering since April 2007.

Shares of Minsheng Bank closed at HK$8.8 near an intraday low, compared with its initial public offering price of HK$9.08, around the mid-point of its indicated range.

Trading volumes were heavy, with 776 million shares changing hands during the day.

In wider trading, the benchmark Hang Seng Index was down 1.78 percent at 22,210.

"Minsheng does not have any capital raising plan in three years," said Dong Wenbiao, the bank's chairman, at a Hong Kong listing ceremony on Thursday.

He also mentioned that the bank currently had no plan of mergers and acquisitions abroad.

Along with the weak Hong Kong debut, Minsheng's Shanghai stock fell 5.7 percent at 7.88 yuan. The Shanghai Composite Index tumbled 3.62 percent at 3,171.

Minsheng sold 3.32 billion H shares, or 15 percent of its enlarged capital in the IPO and plans to use the proceeds to strengthen its capital base and grow its business, as shown in the company document. As of Sept 30, 2009, Minsheng had total assets of 1,402.9 billion yuan.