Jiangyin Bank plans Shanghai IPO next year
China’s Jiangsu Jiangyin Agricultural Commercial Bank plans to raise several bn. yuan in a preliminary public offering in Shanghai next year to pay for enlargement, 2 folk with direct understanding of the plan declared on Tues. . Jiangyin Bank, based in eastern China’s Jiangsu province, submitted an IPO application late last year and is waiting for regulatory permission.
Jiangyin Bank is struggling with Shanghai Rustic Commercial Bank, in some measure owned by Australia & New Zealand Banking Group ( ANZ.AX ), to become China’s first listed rustic bank. Foreign banks including HSBC Holdings Plc ( HSBA.L ), Citigroup Inc ( C.N ) and Standard Chartered Bank ( STAN.L ) have set up agricultural money establishments in China as the governing body encourages agricultural financing to help farmers and home businesses.
“In places like Jiangyin the rustic economy is colourful, with many home businesses that are growing rapidly,” claimed Liu June , an analyst at Changjiang Stocks Corp “Rural banks have the potential to compete immediately with town banks as they grow bigger.” Going public could also help Jiangyin Bank to grow thru acquisitions.
The bank last year acquired a 10 % percentage in Jinjiang Rustic Cooperative , and owns a controlling percentage in 2 agricultural banks in western China’s Sichuan province. Jiangyin Bank was formed in 2001 as a part of China’s money reforms in the country targeted at narrowing the wealth opening between urban and rustic areas.
The bank, with thirty branches and 67 smaller outlets, extends loans principally to home businesses and hi-tech firms, according to its internet site. Jiangyin Bank’s net profit went up 20 % in 2008 to 598 million yuan ( $87 million ) on cash that increased 39 percent to 1.36 bn. yuan, as the world industrial slowdown created issues for the various exporters among its clients and its margins shrank. The bank had total assets of 32 bill yuan at the end of last year.
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