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HONG KONG, March 19 (Reuters) - City commercial lender Harbin Bank launched an up to $1.3 billion initial public offering in Hong Kong on Wednesday, looking to raise funds to bolster its balance sheet.
The bank, based in the northeastern Chinese city of Harbin, and 30 of its state-owned shareholders are offering 3.02 billion shares at an indicative price of HK$2.89 to HK$3.33 each, according to a term sheet of the IPO seen by Reuters.
Recently listed financial services companies in Hong Kong have seen their stocks tumble as investors fled the sector on concerns over a slowdown in China's economy and rising bad debts in the country.
Bank of Chongqing Co Ltd is down 21 percent from its IPO in late October, while Huishang Bank is down 3.5 percent since going public in November and China Everbright Bank Co Ltd has dropped 30 percent since its December listing.
China Cinda Asset Management Co Ltd, which buys bad debts from Chinese lenders and invests in distressed assets, has taken a reverse path, climbing 14.2 percent since its December IPO.
The Hang Seng H Financial Index has tumbled nearly 16.3 percent since the beginning of the year.
ABC International, BOC International and China International Capital Corp. (CICC) are acting as sponsors of the IPO. Eight other banks including CIMB, Credit Suisse and Haitong International were also hired as joint bookrunners.
The bank secured $513 million worth of cornerstone investments from 7 investors including Fubon Life Insurance and CITIC Capital. (Reporting by Elzio Barreto and Lawrence White; Editing by Stephen Coates)