Postal Savings Bank of China to raise up to $4.67 billion in Shanghai listing

FILE PHOTO: People walk past a sign outside a branch of Postal Savings Bank of China (PSBC) in downtown Beijing, China, November 12, 2015. REUTERS/Kim Kyung-Hoon

BEIJING (Reuters) - Postal Savings Bank of China (PSBC) 1658.HK, which has the largest network of branches in the country, is hoping to raise up to 32.71 billion yuan ($4.67 billion) through an initial public offering (IPO) in Shanghai in the largest mainland IPO in four years, stock exchange filings showed on Wednesday.

The Beijing-based lender is selling up to 5.95 billion A shares at 5.5 yuan a share, the filings with the Hong Kong and Shanghai stock exchanges said.

The deal, pending the go-ahead from regulators, would be the largest IPO in China since 2015, Dealogic data showed.

The deal also marks the sixth H-share and A-share dual listing of China’s leading state-owned lenders, under a year-long push to globalize large mainland lenders.

Set up in 2007, PSBC built its business on a massive client base in China’s rural areas thanks to its parent state-owned China Post Group Corp, which operates postal services.

By end-June, PSBC had a total 39,700 branches, 48% of which are located in rural counties and villages. It had some 9.17 trillion yuan savings on book by the end of September, accounting for 96% of the bank’s total liabilities.

PSBC’s bad loan ratio was 0.83% by the end of the third quarter, far below the industry-wide level of 1.81%, as the lender didn’t start its corporate lending business until 2009.

China International Capital Corporation (CICC), Postal Securities Co, CITIC Securities Co and UBS are co-sponsors of the float.

(This story adds RIC for Postal Savings Bank of China)

Reporting by Cheng Leng in Beijing, Engen Tham in Shanghai and Scott Murdoch in Hong Kong; Editing by Grant McCool