HONG KONG Nov 30 Bank of Jinzhou Co Ltd’s initial public offering is set to raise $ 794 million, IFR reported on Monday, with the deal pricing close to the bottom of expectations as investors shunned the lender even after it halved its exposure to the parent of troubled solar gear maker Hanergy Thin Film Energy Group Ltd.
The bank intends to sell 1.two billion new shares and a group of 11 shareholders another 120 million current shares at HK$ four.66 each, added IFR, a Thomson Reuters publication, citing sources familiar with the deal. The price is equivalent to a 1st half 2015 cost-to-book ratio of 1.01 instances, IFR said.
The IPO had been marketed in an indicative range of HK$ four.64 to HK$ five.54.
Bank of Jinzhou’s exposure to Hanergy came through investments in debt instruments and securities classified as receivables that totaled 9.46 billion yuan ($ 1.5 billion) at the finish of June, according to its IPO filing. But in August it slashed it by 50 percent to 4.69 billion yuan by means of a number of diverse transactions. ($ 1 = 6.3981 Chinese yuan renminbi) (Reporting by Elzio Barreto, editing by Louise Heavens)