Postal Savings Bank of China (PSBC) is planning to raise CNY32.71bn ($4.67bn) through one of the largest initial public offerings (IPO) in the country.
According to stock exchange filings, the lender is looking to offload a maximum of 5.95 billion A shares at CNY5.5 to raise the money.
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The deal is subject to regulatory approvals.
The move is said to be aligned with the government’s strategy to globalise and strengthen local lenders.
It comes after the Beijing-based bank raised HK$59.15bn ($7.56bn) by selling H shares in 2016, reported the South China Morning Post.
PSBC was established in 2007 by reforming the previous postal saving management system. The lender became a joint stock limited liability company in January 2012 and went public in 2016.
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By GlobalDataPrimarily, PSBC serves both rural and urban customers as well as SMEs. At the end of June, PSBC operated around 39,700 branches.
By 30 September 2019, the bank reported around CNY9.17 trillion in savings. It tends to nearly 600 million individual customers.
In the first nine months of this year, the bank registered a 16% year-on-year increase in net profit to CNY54.29bn.
Earlier this year, the central bank of China announced initiatives to further liberalise the banking sector. It includes reducing reserve requirement ratios (RRRs) for some small and medium-sized lenders.
