Huishang Bank Again Yanks IPO as Its Largest Shareholder Declines to Sign
Liao Shumin
/SOURCE : Yicai
Huishang Bank Again Yanks IPO as Its Largest Shareholder Declines to Sign

(Yicai Global) Feb. 14 -- After its A-share listing review resumed two weeks ago, Huishang Bank Corp. [HKG:3698] has now withdrawn its A-share issue application once more. The cause for this withdrawal is the same as the last: it needs to further talk with directors and shareholders over legal and regulatory issues and China Securities Regulatory Commission (CSRC) requirements.

Though it deems its interests to always coincide with those of its shareholders, involved parties may nonetheless have different takes on some issues, it told state media The Paper. It will strive to address this problem through further consultation. Its new board chairman visited Shanghai Song Ching Ling Foundation after taking office, it noted. The foundation is the controlling shareholder of Shanghai Zhongjing Group Co., and the latter and its affiliated companies hold 16.12 percent of Huishang Bank's voting stock.  

As Huishang Bank cannot satisfy the CSRC criteria, it has withdrawn its application and will re-start the IPO when conditions become favorable, it said.

After receiving a gift of 97.5 percent of the equity of Zhongjing Group from its former actual controller in 2011, the foundation entrusted Gao Yang, Zhongjing Group's chairman, with the group's operation and management, and the group is now at loggerheads with Huishang Bank's board over the placement.

As China's first urban commercial bank to transit to mixed-ownership, Huishang Bank has long been keen on its IPO. The CBRC branch in China's eastern Anhui province where it has its headquarters approved Huishang Bank's listing in principle in June 2015. However, ongoing bickering between its board and Zhongjing Group afterwards made its listing a tough sell, and the former did not sign off on the updated draft of Huishang Bank's IPO application, Gao has stated in media interviews.

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Keywords: Huishang Bank , IPO