Citic bank A-share approved

(South China Morning Post )
Updated: 2007-04-03 17:30

The China Securities Regulatory Commission has approved an application by China Citic Bank for an initial public offering of shares in Shanghai, part of a dual listing in the mainland and Hong Kong that sources said could raise up to US$5 billion.

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Citic Bank, the mainland's seventh-biggest commercial bank, has said it would issue 2.3 billion A shares in Shanghai and up to 4.95 billion H shares - excluding overallotments - to be listed in Hong Kong at the same time.

The bank, 80 per cent-owned by China International Trust and Investment Corp, is only the second mainland company to seek a simultaneous listing in the two markets, following Industrial and Commercial Bank of China last year.

The bank, in which Spain's Banco Bilbao Vizcaya Argentaria has a 4.83 per cent stake, did not say when it would begin the offer.

Mainland initial public offerings are typically launched within about two weeks of receiving regulatory approval.

Sources said the deal would include shares for Banco Bilbao and Hong Kong-listed Citic International Financial Holdings.

(For more biz stories, please visit Industry Updates)