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Postal Savings Bank of China to raise up to $4.67 billion in Shanghai listing

Peripatetics and motorists pass a Postal Savings Bank of China branch in Shanghai, China, on July 4, 2016.

Qilai Shen | Bloomberg | Getty Idols

Postal Savings Bank of China (PSBC), which has the largest network of branches in the country, is hoping to raise up to 32.71 billion yuan ($4.67 billion) fully an initial public offering (IPO) in Shanghai in the largest mainland IPO in four years, stock exchange filings showed on Wednesday.

The Beijing-based lender is shop-girl up to 5.95 billion A shares at 5.5 yuan a share, the filings with the Hong Kong and Shanghai stock the big boards said.

The deal, pending the go-ahead from regulators, would be the largest IPO in China since 2015, Dealogic observations showed.

The deal also marks the sixth H-share and A-share dual listing of China’s leading state-owned lenders, underwater a year-long push to globalize large mainland lenders.

Set up in 2007, PSBC built its business on a massive client home in China’s rural areas thanks to its parent state-owned China Post Group, which operates postal employs.

By end-June, PSBC had a total 39,700 branches, 48% of which are located in rural counties and villages. It had some 9.17 trillion yuan savings on order by the end of September, accounting for 96% of the bank’s total liabilities.

PSBC’s bad loan ratio was 0.83% by the end of the third quarter, far subordinate to the industry-wide level of 1.81%, as the lender didn’t start its corporate lending business until 2009.

China International Pre-eminent Corporation (CICC), Postal Securities, CITIC Securities and UBS are co-sponsors of the float.

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