Shanghai-based Haitong Securities Co plans to sell shares in Hong Kong for the first time to raise 14.4 billion yuan (US$2.2 billion).
The fifth-biggest Chinese mainland brokerage by market share will issue new shares that account for no more than 13 percent of its overall capital after the sale, excluding over-allotment, it said in a statement yesterday.
The amount is equivalent to nearly 1.42 billion shares. Haitong is likely to raise about 14.4 billion yuan based on the closing share price of 10.19 yuan last Wednesday. Shares resumed trading in Shanghai yesterday after a three-day suspension due to its plan to sell stock in Hong Kong. The stock fell 4.22 percent to 9.76 yuan in Shanghai. The Shanghai Composite Index lost 0.88 percent yesterday.
Money raised from the new share sale will help the brokerage expand its business into futures and margin financing and securities lending transactions.
Haitong's plan follows that of Citic Securities Co which said late last month it planned to become the first mainland brokerage to be listed in the city.
CITIC Securities, the biggest mainland brokerage, aims to raise US$17.7 billion from a share sale of up to 10 percent of its capital, or 1.27 billion shares.
Haitong said its profit in the first quarter rose an annual 17.2 percent to 1.19 billion yuan on higher earnings from its underwriting and asset-management business.
