Jinshang Bank Files for USD435 Million Hong Kong IPO After Seven-Year Delay
Liao Shumin
DATE:  Jun 28 2019
/ SOURCE:  yicai
Jinshang Bank Files for USD435 Million Hong Kong IPO After Seven-Year Delay Jinshang Bank Files for USD435 Million Hong Kong IPO After Seven-Year Delay

(Yicai Global) June 28 -- Jinshang Bank, the largest urban commercial lender of northern China's Shanxi province, has finally begun its initial public offering after postponing its plan for seven years.

Jinshang Bank has successfully passed a hearing of the Hong Kong Stock Exchange, The Paper reported today. The firm will aim to raise between HKD3.3 billion and HKD3.4 billion (up to 435.4 million), setting its share price between HKD3.8 (USD0.49) and HKD3.98. Trading is expected to start on July 18. 

The Taiyuan-based lender started preparing for an IPO in 2012 but delayed its plan in 2014. It changed the destination from China's mainland to Hong Kong, filing its application last February. 

Jinshang Bank updated its 2018 earnings after the hearing, increasing its non-performing loan ratio 6 basis points to 1.87 percent, Yicai Global learned. In 2017, the ratio was 1.64 percent. 

The increase in the NPL ratio was caused by weakened repayment abilities of borrowers, including some manufacturing and retail firms, the bank said in its earnings report. A slowdown of macroeconomic growth, softening demand overseas, and overcapacity resulted in the credit crunch, it added. 

Editor: Emmi Laine

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Keywords:   Jinshang Bank,IPO