China Huarong Plans A-Share Market Listing
Yicai Global
/SOURCE : Yicai
China Huarong Plans A-Share Market Listing

(Yicai Global) Dec. 26 -- China Huarong Asset Management Co. [HKG:2799], the country's largest asset managing company by assets, said its application for A-share offering has been accepted by the China Securities Regulatory Commission (CSRC).

The company plans to issue up to 6,895 million shares, accounting for no more than 15 percent of its total after the issuance, the CSRC website indicates. Its previous earnings per share was CNY0.41 (USD0.06) with a book value per share (BVPS) of CNY2.77. It did not specify an initial offering price but said the A-shares will be priced at no less than the BVPS.

All proceeds, excluding issue fees, will be used to supplement the company's capital and develop core businesses to better meet capital regulations and achieve stable development, the company said.

The company was founded as China Huarong Asset Management Corporation in September 2012 and was one of four leading financial asset management firms in China. Huarong Asset Management Co. listed on the Main Board of the Stock Exchange of Hong Kong in October 2015.

Its total assets exceeded CNY1 trillion (USD144 billion) in the first half of the year. Its closing share price on Dec. 23 valued the company at HKD100.4 billion (USD13 billion).

China's Ministry of Finance is Huarong's largest shareholder, directly holding 24,753 million shares or 63.3 percent of its total prior to the issuance. Its second-largest shareholder is the USA's Warburg Pinuc Financial International, with a 5.27 percent stake. The company previously said it plans to list on the mainland's A-share market in 2018.

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