Dongguan Rural Commercial Bank Plans to Raise Over $1B in Hong Kong Offering

By P.R. Venkat

Dongguan Rural Commercial Bank Co. is planning to raise nearly 10 billion Hong Kong dollars (US$1.29 billion) by offering shares in one of Asia's most active equity fund raising market.

China's fifth-largest rural commercial bank in terms of assets is planning to sell a total of 1.15 billion H-shares, Dongguan Rural said Monday.

It is marketing the shares in the price range of between HK$7.92-HK$8.71 with an aim to finalize the offer price on Sept. 22.

Hong Kong's IPO market has been active and has attracted numerous Chinese companies ranging from property to technology to pharmaceuticals to list their shares on this exchange.

A total of 46 companies raised more than US$27 billion in the first half from stock offerings in the Asian financial hub, more than double that from the same period last year.

Shares are expected to start trading on the Hong Kong Exchange from Sept. 29, the bank said.

Proceeds from the offering will be used to strengthen the bank's capital base and for business expansion.

ICBC and CMS are among the banks acting as joint sponsors for Dongguan Rural Commercial Bank's offering.

Write to P.R. Venkat at [email protected]