China Postal Bank PSBC raises $7bn in run-up to world’s largest IPO

PSBCPostal Savings Bank of China (PSBC) has raised $7bn in its latest pre-IPO funding round by selling a 17% stake to a group of investors including JP Morgan, UBS and Alibaba’s financial affiliate Ant Financial in the run-up to a flotation on the Hong Kong stock market that could eclipse even the $25bn that the e-commerce site raised last year.
PSBC is China’s sixth-largest lender by assets and its largest when measured by the number of branches, and the stake sale also represents the largest private fundraising by a Chinese institutions to date. The other new shareholders are DBS, Singapore’s Temasek sovereign wealth fund, the International Finance Corp (IFC), the Canada Pension Plan Investment Board (CPPIB), Tencent, China Telecom and China Life.
CPPIB announced that it had invested $500m, while a filing to the Hong Kong Stock Exchange revealed that China Life had invested $2bn for a stake of not more than 5%, which would value PSBC at $41bn.
“The strategic partnerships with UBS and JP Morgan should speed up PSBC’s own wholesale banking and wealth management business,” PSBC President Lu Jiajin told a press conference in Beijing, “while the cooperation with Ant Financial and Tencent will strengthen our presence in internet finance.”
Controlled by the state-owned China Post Group postal service, PSBC has about 500 million clients according to its website with assets of just over $1 trillion.

Source: financeasia