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HONG KONG (Reuters) - Huishang Bank Corp Ltd has received commitments worth $545 million from five cornerstone investors for its up to $1.3 billion Hong Kong IPO, the biggest listing of a bank in the city in three years, a person with direct knowledge of the plans said on Monday.
The investors in the IPO include Chow Tai Fook, controlled by Hong Kong jewelry and property billionaire Cheng Yu-Tung, and Chinese property group China Vanke Co Ltd, said the person, who was not authorized to speak publicly on the matter. China Vanke put the majority of the money in, said the person, with an investment of $420 million.
Cornerstone investors into IPOs receive guaranteed allocation in exchange for agreeing to retain their stakes for a set amount of time.
The bank plans to raise up to $1.3 billion in the initial public offering, set to launch on Tuesday.
The IPO is the biggest in Hong Kong by a bank since Chongqing Rural Commercial Bank (3618.HK) raised $1.7 billion in its IPO in September 2010, according to Reuters data.
The other three cornerstone investors in Huishang include an investment firm and two individuals, the person said.
Reporting by Elzio Barreto; Editing by Michael Flaherty