SHANGHAI: China Bohai Bank Co, partly owned by Standard Chartered Plc, is aiming for an initial public offering in Hong Kong or on the mainland in 2012 or 2013, Chairman Liu Baofeng said yesterday.

Bohai Bank plans to quadruple total assets to 250 billion to 300 billion yuan ($37-$44 billion) by the time of the listing, Liu told a news conference in Shanghai. The lender is currently selecting underwriters to advice on the planned IPO.

"It's not that important whether to list domestically or in Hong Kong," Liu said. "What's important for us is to increase our brand awareness and market share."

Bohai Bank and other city lenders are rushing to raise money from bond and stock markets to fund their national expansion as they compete with much bigger rivals such as Bank of China and China Construction Bank.

The mainland will resume IPOs as soon as next month after an eight-month suspension on signs that investor confidence has recovered.

Bohai Bank, which was established in late 2005 in the northern city of Tianjin, plans to expand to 20 mainland cities next year, compared with eight currently.

The lender plans to sell more than 2 billion yuan of subordinated bonds this year to support growth, and will also be actively involved in the set-up of private equity funds by the Tianjin government, Liu said.

Bohai bank is 25 percent controlled by Tianjin TEDA Investment Holding Co and 19.99 percent owned by Standard Chartered. Other investors include China Ocean Shipping (Group) Co, Shanghai Baosteel Group and State Development and Investment Corp.

Liu said that Standard Chartered has helped Bohai Bank set up a sound management infrastructure during the past three years, paving the way for future expansion.

A recent market rally in Hong Kong and optimism on an imminent economic recovery attract companies to plan share sales in the city's stock exchange.

Reuters

(HK Edition 05/26/2009 page4)