China Cinda Announces Hong Kong IPO

China Cinda Asset Management Co Ltd. announced on Wednesday that it will launch an initial public offering (IPO) in Hong Kong on Thursday.

With a planned issuance of 5.32 billion H-shares, the company has set a range of HK$3 and HK$3.58 per share, it said in a press release.

Cinda expects to raise HK$16.97 billion (US$2.19 billion) if an over-allotment option is not exercised during the IPO. Shares of the company will be listed on Dec 12 on the main board of the Hong Kong Stock Exchange.

The listing marked a first of its kind for State-owned Chinese financial assets management companies. Cinda, as one of the four Chinese financial asset management firms, was restructured as a joint stock company in June 2010 under approval by the State Council, China's cabinet.

Businesses of the firm include collecting banks' bad debts, bankruptcy management, outbound investment, securities trading, investment and financial risk counseling.

The company said that the funds raised through the IPO will are intended to replenish its capital, 60 percent of which will be used to develop its core business of bad asset management, with the remainder to be used as capital injection to subsidiary companies and financial investment and asset management.