Postal Bank of China raised $7.4 billion during the largest in two years, IPO

Postal savings Bank of China Postal Savings Bank of China PSBC) has attracted $7.4 billion within the IPO, a source told the New York Times. Earlier Wednesday, that PSBC may draw the same amount, sources told Bloomberg.

IPO of Postal savings Bank became the largest in the world in 2016 and the largest since the IPO of one of the world’s leaders in e-Commerce in new York, Alibaba Group, for $25 billion in 2014.

Shares PSBC posted on the Hong Kong stock exchange at a price of 4.76 Hong Kong dollar ($0,61) apiece, which is closer to the lower boundary of the expected range of accommodation 4.68โ€“of 5.18 Hong Kong dollar, a source told the New York Times.

The postal savings Bank was founded in 2007 and is owned by the State postal service of China. This Bank has the country’s largest network of branches โ€” more than 40 thousand, which serviced more than 500 million customers-individuals.

Among Chinese banks PSBC ranks sixth in terms of assets (to 7.7 trillion yuan, or $1.2 trillion), and the ratio of loans (of 2.67 trillion yuan, or $413 billion) deposits (of 6.73 trillion yuan, or $1 trillion) is 30%, indicating a lot of scope for further lending growth.

In December 2016 PSBC sold almost 17% of its shares to the group of foreign investors (including UBS Group, JP Morgan and Tencent). The package was sold for $7 billion, while the Bank was valued by investors at $41 billion.

PSBC โ€” one of the last state banks of China, came under privatization in the framework of the national program, operating since the mid 1990-ies. Since then, the international investment banks have earned on these placements billions of dollars.