I.P.O. for Postal Savings Bank of China Gets Help From Beijing
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A man leaving a Postal Savings Bank of China branch in Beijing. The bank’s initial public offering is highlighting the practice of cornerstone investing, where big investors are invited to buy up shares ahead of a company going public. CreditKim Kyung Hoon/Reuters
HONG KONG — China’s biggest banks are struggling with a slowing economy, rising bad debts and shrinking profits.
So to raise more than $7 billion in the world’s largest new share sale in two years, a stodgy Chinese bank has sought a little help from its friends.
The Postal Savings Bank of China, a sprawling state-owned lender that is one of the country’s biggest, priced shares on Wednesday for its initial public offering at $0.61 each, valuing the new shares at $7.4 billion, according to a person familiar with the offering who was not authorized to speak publicly about the pricing. The total proceeds make it the biggest single I.P.O. anywhere since 2014, when Alibaba’s $25 billion New York listing set the global record…
I.P.O. for Postal Savings Bank of China Gets Help From Beijing
