(ChinaKnowledge, Sept 25, 2006) The planned IPO of Ningbo Commercial Bank will be changed from a listing in Hong Kong to an A-share sale in Shanghai instead.

Chairman Lu Huayu had initially said in May that Ningbo Bank¡¯s IPO will be launched on the Hong Kong Stock Exchange in 2007. However, the switching of the stock exchange comes after Ningbo Bank sought advice from Chinese stock regulators, according to Reuters¡¯ sources familiar with the deal.

Goldman Gao Hua Securities, a joint venture between U.S.-investment bank Goldman Sachs Group Inc., the Beijing-based Gao Hua Securities Co., and Lenovo¡¯s parent company Legend Holdings Ltd., has been appointed to arrange for the IPO next year.

Ningbo Bank expects to raise about RMB 5 billion from the Shanghai IPO, reported the South China Morning Post. Further details, however, were not revealed.

For the fiscal year of 2005, the lender posted net profit of RMB 300 million, an increase of 288% from RMB 77 million during the same period last year. The substantial increase in net profits stemmed from increasing loans in the fast-growing eastern province of Zhejiang.

Deposits have been making a steady increase. For the first half of 2006, deposits climbed to RMB 42 billion from RMB 37 billion in December 2005 and RMB 30 billion at the end of 2004.

Loans have also been increasing - from RMB 17 billion at the end of June 2004 to RMB 19 million as at Dec. 31. As at end Jun. 2006, Ningbo Bank¡¯s loans stood at RMB 27 billion.

The Ningbo Financial Bureau is the lender¡¯s single largest shareholder with a 15% stake in Ningbo Bank.
source:ChinaKnowledge
tag:China