Goldman Sachs to Arrange Ningbo Bank IPO
September 22, 2006
Goldman Sachs to Arrange Ningbo Bank IPO. Check it out:(SinoCast China Financial Watch Via Thomson Dialog NewsEdge) ZHEJIANG, September 22, SinoCast -- The midsize Ningbo Commercial Bank is preparing for an initial pubic offering at the local equity market, it announced recently. The bank has invited Goldman Sachs Gao Hua Securities to join in the preparation and also to be the main underwriter. Established in December 2004, the securities firm is 33 percent owned by Wall Street bulge-bracket Goldman Sachs, the ceiling ownership a foreigner is allowed to have in a local securities firm. Beijing Gao Hua Securities holds the remaining stake. NBCB, based in Ningbo of Zhejiang Provice, eastern China, is to discuss the listing plan at the third extraordinary shareholders' meeting on October 7. The plan has already been submitted to local regulators, said the bank. It is now also seeking for more partners, including accounting firms and law offices to prepare for the listing. Still, it has not disclosed how many shares to offer as well as the targeted IPO size. NBCB de facto originally expected to launch a Hong Kong IPO next year instead of a local one, according to the chairman Lu Huayu in earlier interviews. But the renmimbi-dominated A-share listing is a better choice for it, insiders explained recently. Home IPO is to take a lower cost compared with overseas one. Moreover, local investors who are familiar with the midsize but well-managed bank are more willing to buy its shares, they added. Shares issued by such promising lenders are hence predicated to be a strong push for the local stock market. Founded in April 1997, NBCB in the end of 2004 lifted the capital base by CNY 1.38 billion, increasing the paid-up capital to CNY 1.8 billion. The capital adequacy ratio also rose to 10.81 percent, far beating the minimum of 8 percent required by China Banking Regulatory Commission, the market watchdog. The figure has climbed to 11.59 percent by December 2005. By the end of 2005, the bank's deposits hit CNY 37.3 billion and loans CNY 19.6 billion. The assets amounted to CNY 42.1 billion and non-performing asset ratio was 0.61 percent. It in the past year achieved up to CNY 689 million profits. NBCB sited on the top of the industry league table for 2005 in terms of financial condition, according to a list released in March by Beijing-based Banker magazine and China Commercial Bank Competitiveness Research Center. Fifteen percent controlled by the city's Financial Bureau, the bank is 55 percent owned by some private companies, including Huamao Group, Shanshan Enterprise and Youngor Group. The remaining is held by the bank's management team and staff. It early this year signed an agreement with Singapore's third biggest lender Overseas Chinese Banking Corp to sell a 12.2 percent stake for CNY 570 million. Upon the completion of the acquisition, the Singapore's investor is to be the second biggest shareholder at NBCB. Several other city commercial banks, including those in Nanjng and Xi'an, are eying the A-share sales as well. Based in the eastern province of Jiangsu, Nanjing City Commercial Bank has brought into two foreign investors, International Finance Corporation, the private sector arm of the World Bank Group, as well as French-based BNP Paribas. The latter has become the second largest shareholder in NCCB only behind the Nanjing State-owned Asset Investment & Management Holding (group) Co, who controls a 19.7 percent stake. Xi'an City Commericial Bank has been partly owned by IFC and Bank Of Nova Scotia from Canada. (USD 1 = CNY 7.9)
Copyright 2006 SinoCast LLC
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