Eleven China lenders eye first mainland bank IPOs since 2010

SHANGHAI, July 1 Tue Jul 1, 2014 5:04am EDT

SHANGHAI, July 1 (Reuters) - Eleven Chinese banks are planning for initial public offerings, their draft prospectuses showed, the first lenders to push ahead with listing plans since China Everbright Bank Co Ltd debuted in 2010.

In the draft documents posted on the China Securities Regulatory Commission website on late Monday, nine banks said they plan to list on the Shanghai stock exchange while two are seeking to list on the smaller Shenzhen bourse.

None of the 11 small and medium-sized lenders disclosed their fundraising target but all said they would use the funds to increase capital.

Many smaller Chinese banks are seeing a spike in non-performing loans, and a decline in deposits, as the economy slows and competition from online finance firms increases.

IPOs picked up in early June after a four-month hiatus followed a brief flurry of activity in January and February which ended a year-long halt. Analysts said the securities regulator had halted IPOs in late 2012 to allow it to refine listing rules and to avoid draining money from existing stocks.

Among the banks planning to list is the Bank of Shanghai, which had reportedly been seeking a Hong Kong listing. The bank had initially planned to list on the mainland in 2008, but approvals were delayed.

Bank of Shanghai said it plans to sell 1.2 billion shares and will use funds to improve its capital adequacy level and enhance competitiveness. Guotai Junan Securities and Shenyin & Wanguo Securities will underwrite the deal.

Others seeking a Shanghai listing include Wuxi Rural Commercial Bank Co Ltd, Shengjing Bank Co Ltd, Jiangsu Wujiang Rural Commercial Bank Co Ltd, Bank of Jiangsu Co Ltd, Jiangsu Changshu Rural Commercial Bank Co Ltd, Bank of Guiyang Co Ltd, Bank of Hangzhou Co Ltd and Bank of Chengdu Co Ltd.

Jiangsu Zhangjiagang Rural Commercial Bank Co Ltd and Jiangsu Jiangyin Rural Commercial Bank Co Ltd said they plan to list on the Shenzhen stock exchange.

The IPOs are subject to regulatory approval.

In 2010, the Agricultural Bank of China, the third largest lender, raised a combined $22.1 billion in the country's biggest IPO in Shanghai and Hong Kong, while China Everbright Bank Co Ltd listed in the same year.

(Reporting by Shanghai Newsroom; Editing by Kazunori Takada and Miral Fahmy)

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