Economy

Everbright Bank's IPO application approved

(Xinhua)
Updated: 2010-07-27 01:19

BEIJING - China Securities Regulatory Commission approved the initial public offering (IPO) application of China Everbright Bank on Monday.

The Beijing-based bank would sell, at most, 6.1 billion shares in its IPO, or up to 7 billion shares if an over-allotment option is exercised, to expand the deal by 15 percent.

The capital raised is to be used to replenish the bank's capital, said Tang Shuangning, chairman of the Everbright Group.

Banks started raising funds earlier this year and a series of such acts caused markets to become more sensitive, said Lian Ping, chief economist of the Bank of Communications.

"The Everbright's fund-raising is relatively small. Meanwhile, the bank has introduced a series of measures to reduce the impacts of the act. Its IPO will not bring huge pressure to the market," said Guo Tianyong, professor with the Central University of Finance and Economics.