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BQD pushes ahead with A stock sale
Posted on Thursday, 06 December 2018 12:44
Bank of Qingdao (BQD) is working towards an A share offering currently worth HKD 2.65 billion (USD 339.51 million) in the markets after receiving a regulatory rubber stamp.

The mainland lender will issue no more than 450.97 million shares, representing a post-sale stake of 10.0 per cent and a pre-dilution net asset value of CNY 4.52 apiece (USD 0.66).

Proceeds will help replenish core tier-one capital in order to increase its capital adequacy ratio but no further information has been disclosed.

As at the end of June 2018, BQD had a total of 2,339 ordinary shareholders, including 2,165 domestic and 174 H-stock registered investors.

Milan-headquartered Intesa Sanpaolo is among the current backers, with a 15.4 per cent pre-offering stake, which is likely to be diluted to 13.9 per cent following the capital increase.

Several companies housed within Haier group, the China’s household appliance-to-industrial robot manufacturer, are also shareholders and hold an aggregate 20.0 per cent equity interest.

BQD said in a statement for preliminary annual results 2018 that it has actively “responded to the changes in the external business environment” to achieve steady growth in “scale and profitability”.

It is expected that the lender’s operating income for January to December 2018 will be CNY 6.48 billion to CNY 7.04 billion, representing a year-on-year increase of 16.0 per cent to 26.0 per cent.

Net profit attributable to shareholders is likely to reach CNY 1.92 billion to CNY 2.09 billion, signifying a 1.0 per cent to 10.0 per cent rise over the 12 months.

Zephyr, the M&A database published by Bureau van Dijk, shows there have been 243 capital increases announced in 2018 to date that target the banking sector.

The largest of these is Bank of China revealing plans to raise USD 17.24 billion, which is followed by a USD 14.99 billion cash call by Agricultural Bank of China.

© Zephus Ltd