SHANGHAI, Aug 6 (Reuters) - Bank of Shanghai is planning a private share placement of up to 700 million shares, its second such issuance in a year, to meet capital requirements needed for a planned IPO, a newspaper reported.
The bank has not set a price for the issuance but last year’s placement was set at 13.9 yuan per share and if set at the same price it would raise 9.7 billion yuan ($1.6 billion), the 21st Century Business Herald reported.
Many shareholders, however, expect Bank of Shanghai to set a higher price given strong profits last year, it said.
The lender revealed its plans at a shareholder meeting recently, the newspaper said, citing an unidentified source with direct knowledge of the matter.
Bank of Shanghai could not immediately be reached for comment. It is seeking to list in Shanghai and Hong Kong, hoping to raise a combined $2 billion.
Last year’s private placement raised 6.5 billion yuan but the lender still needs an extra 15 billion yuan ($2.4 billion) to meet listing requirements, the paper said.
Bank of Shanghai’s net profit last year jumped 25 percent to 9.4 billion yuan. Santander, Spain’s largest bank, holds an 8 percent stake in the lender and is its second-largest shareholder. ($1 = 6.1705 Chinese Yuan) (Reporting by Fayen Wong and Samuel Shen; Editing by Edwina Gibbs)