DRC Bank had priced each share at HK$8.71. Credit: Photo by Michael Longmire on Unsplash.

China’s Dongguan Rural Commercial Bank (DRC Bank) has reportedly raised $1.2bn (HK$9.1bn) in its Hong Kong initial public offering (IPO).

DRC Bank priced each share at HK$7.92, which is at the lower end of the marketed range, Bloomberg reported citing people familiar with the matter.

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Initially, the lender had marketed 1.15 billion shares for HK$8.71, the report added.

DRC Bank, which is based in the Pearl River Delta region, plans to use the proceeds for boosting its capital base as well for the business expansion.

DRC Bank’s IPO in the Asian financial hub comes at a time when Chinese lenders are facing the Evergrande crisis and crackdown from the country’s regulators.

Notably, the lender counts its exposure to the real estate market as a risk factor in its prospectus.

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As of 31 March 2021, real estate commercial lending is 8.8% of its loan book, DRC Bank noted.

DRC Bank’s shares will start trading on 29 September.

The IPO was jointly sponsored by China Merchants Securities, CMB International Capital, Agricultural Bank of China, and Industrial & Commercial Bank of China.

Evergrande is a real estate developer in China with over $300bn in debt. Last week, the firm said that it may default on its debt.

Earlier this week, the People’s Bank of China (PBoC), the country’s central bank, reportedly pumped $18.6bn (CNY120bn) into the banking system to ease market tension caused by the Evergrande crisis.