CICC may raise $1b from stock offering in Hong Kong

Pedestrians walk past a branch of CICC (China International Capital Corporation) in Shanghai, Oct 14, 2014. [Photo/IC]

China International Capital Corp, the country's first Sino-foreign investment bank, plans to raise about $1 billion from an initial public offering in Hong Kong this year, people with knowledge of the matter said.

The Beijing-based company aims to start the share sale in the second half of this year, said the people, who asked not to be identified as the information is private. It has yet to seek approval from the city's stock exchange, they said.

The once-dominant investment bank, which has lost ground to rivals, is pushing ahead. The firm has hired Hopu Investment Management Co partner Bi Mingjian as its chief executive officer in a move that should help smooth the listing plan, a person with knowledge of the matter said.

"With strength on both IPOs and research, CICC is set to benefit from China's stock market rally," Edmond Law, a Hong Kong-based analyst at UOB-Kay Hian Holdings Ltd, said. "Strong earnings by Chinese brokerages and market reforms will also help such companies sell shares."

CICC will act as the lead sponsor for its IPO, the people said. A Beijing-based spokeswoman for the bank declined to comment.

Morgan Stanley helped create CICC in 1995 with China Construction Bank Corp as part of the efforts to develop the country's capital markets. The Wall Street firm sold its 34.3 percent stake to investors including KKR & Co, TPG Capital and GIC Pte in 2010 for about $1 billion.

CICC ranked ninth among underwriters of initial share sales in Hong Kong last year, with a 4.2 percent market share, according to data compiled by Bloomberg. It ranked second among arrangers of domestic IPOs this year, up from 10th place in 2014.

CITIC Securities Co has gained 94 percent in Hong Kong since its first-time share sale in September 2011.