China Everbright Bank plans A-share listing in July

China Everbright Bank (CEB) is expected to list in domestic stock market in July 2008 to tap the bull stock market in China, China's Securities Daily reported today.

Earlier reports said CEB had appointed three securities companies, namely China Jianyin Investment Securities, Shenyin & Wangguo Securities Co. Ltd. and Galaxy Securities Company Ltd, as the underwriters for its IPO and expected to raise more than RMB 20 billion (US$2.74 billion) on the domestic A-share market and the Hong Kong Stock Exchange. However, the news was denied by the lender on 28th December.

A top officer with the bank revealed that the underwriters, strategic investors and other IPO details will be finalized after CEB's board meeting early 2008.

Last month, CEB received an RMB 20 billion capital injection from the state-owned Central Huijin Investment Co, which helped to pave the way for the bank's listing.

However, this infusion did not fully supplement CEB's capital shortage due to its large amount of bad debt. It plans to issue subprime bonds worth of RMB 4 billion to RMB 5 billion to resolve this situation.