Comprehensive M&A data with integrated detailed company information

Luzhou City to go public in Hong Kong this month
Posted on Tuesday, 04 December 2018 10:55
Luzhou City Commercial Bank will list in Hong Kong on 17th December via a first-time share sale worth as much as HKD 1.86 billion (USD 237.89 million) that would give a market capitalisation of up to HKD 7.42 billion.

The regional lender is issuing 545.74 million H stocks at HKD 3.15 to HKD 3.40 apiece, which reflects to unaudited pro forma adjusted net tangible assets of HKD 3.10 to HKD 3.16 per share.

Its initial public offering is one of eight targeting a lender incorporated in China announced so far this calendar year, and, of these, is the third-largest by known value, according to Zephyr, the M&A database published by Bureau van Dijk.

Cornerstone investors comprise Shanghai Yude Communication Technology, British Virgin Islands-incorporated venture capital and private equity investor Wudaokou Capital and Luzhou Liquor Golden Triangle Wine Industry Development.

As the largest commercial bank in Luzhou, Sichuan province, Luzhou City had total assets of CNY 70.88 billion (USD 10.26 billion), as of 31st December 2017, as well as 7,256 corporate and 647,969 retail banking customers, as of 30th June 2018.

Customer loans amounted to CNY 9.98 billion, CNY 14.53 billion, CNY 19.40 billion and CNY 24.30 billion, as of 31st December 2015, 2016 and 2017 and 30th June 2018, respectively.

As of the same dates, Luzhou City’s non-performing loans (NPL) stood at CNY 29.80 million, CNY 77.10 million, CNY 192.70 million and CNY 220.70 million, respectively.

The group’s NPL ratio was 0.3 per cent, 0.5 per cent, 0.9 per cent and 0.9 per cent as at the same dates, respectively.

Sichuan province’s finance industry’s output amounted to CNY 330.30 billion, about 8.9 per cent of the total gross domestic product of the region, in the 12 months to 31st December 2017.

As of 31st December 2017, financial assets of the territory amounted to CNY 10,000 billion, the aggregate financing for the economy totalled CNY 6,600 billion, and deposits and loans reached CNY 7,200 billion and CNY 4,900 billion, respectively.

There were around 2,000 financial institutions in the province and 850 entities engaging in the banking, securities and insurance industry at the end of 2017.

© Zephus Ltd