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I.P.O./ 60% of 1 trillion dollars? datzzz lot of somliezzz/\Postal Savings Bank of China

Postal Savings Bank Of China Seeks $25 Billion IPO, And Pre-IPO Investors -- Barron's Blog
1:06a ET February 25, 2015 (Dow Jones) Print
Postal Savings Bank Of China Seeks $25 Billion IPO, And Pre-IPO Investors -- Barron's Blog


By Shuli Ren
We may have a Chinese IPO that rivals Alibaba Group's ( BABA) next year.
China Daily reported today that Postal Savings Bank of China, China's sixth largest lender by assets, is seeking to raise up to $25 billion in an IPO next year. The bank, currently owned by the national postal service provider China Post Group Corp., has already got the green light for its IPO from the Ministry of Finance.

The Postal Savings Bank of China wants to raise $6 billion from pre-IPO investors by this June and transfer about 15% of its equity to them. Potential investors include Alibaba Group's financing arm Ant Financial, U.S private equity groups including Blackstone and KKR, as well as Asian sovereign wealth funds such as Khazanah Nasional Berhad of Malaysia and Singapore's Temasek, Financial Times reported earlier this week.
What's so special about Postal Savings Bank of China? It is a "fixture in rural China," reported FT's Henny Sender:

Postal Savings Bank is a fixture in rural China, where its network scoops up deposits from rural households. It has as much as $800bn in deposits, and puts its money into Chinese government bonds and the interbank market as well as lending to small and medium-sized enterprises and agricultural households.


Its branch network of about 40,000 is larger than more widely known state-owned banks, such as Industrial and Commercial Bank of China.


"It is a true and pure savings bank," said the head of one Chinese investment fund that is considering buying a stake. " Its ability to collect deposits is very, very strong and because it doesn't have a huge loan book, the overall risk is very, very low. But to turn it into a new retail bank may be way too difficult."


More at Barron's Asia Stocks to Watch blog, http://blogs.barrons.com/asiastocks/

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(END) Dow Jones Newswires
February 25, 2015 01:06 ET (06:06 GMT)

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