SHANGHAI, Nov 16 (Reuters) - Shares in Bank of Shanghai Co Ltd soared 44 percent on debut on Wednesday, the most allowed in one day, after it raised 10.7 billion yuan ($1.58 billion) in the Shanghai bourse’s largest IPO this year.
The lender’s initial public offering was oversubscribed 763 times earlier in November, with a price-to-earnings ratio at 8.26, higher than the average of 7.66 for listed peers, according to data from the Shanghai stock exchange.
Shares of Bank of Shanghai shot up and were trading at 25.59 per share, 44 percent above their IPO price of 17.77 yuan per share, reaching the maximum allowed increase in a day.
BoS is the seventh bank to list on mainland exchanges this year as Chinese lenders try to bolster capital, such as issuing asset-backed securities, to counter an onslaught of soured debt and dwindling margins.
The lender reaped 11 billion yuan of net profit in the January to September period, an on-year rise of around 10 percent, according to its third-quarter results.
At the end of the third quarter, BoS’s assets hit 1.7 trillion yuan.
The bank, established in 1995 and with 314 branches in cities across the country, said in its prospectus funds will be used to boost capital.
The IPO was sponsored by Guotai Junan Securities and a subsidiary of Shenwan Hongyuan Securities. ($1 = 6.7647 Chinese yuan renminbi) (Reporting by Shanghai newsroom and Engen Tham; Editing by Stephen Coates)