China’s state-owned Xiamen Bank looks to raise $263m in Shanghai IPO

Chinese state-owned Xiamen Bank Co., Ltd kicked off its subscription exercise with a target to raise as much as 1.77 billion yuan ($263 million) on the Main Board of the Shanghai Stock Exchange (SSE) on October 13.

Backed by Taipei-based Fubon Financial Holding, Xiamen Bank has offered up to 264 million common shares at 6.71 yuan ($1) apiece. Its shares have been oversubscribed 3,249 times. The bank aims to fuel its capital in a bid to consolidate competitive capacity in the market, it said in the IPO prospectus.

Located in Southeast China’s Fujian province, Xiamen Bank (formerly known as Xiamen Commercial Bank) operates 62 divisions in the province and beyond. Its services cover deposits, loans, bill settlement, fund and wealth management, trade financing, and investment banking. In addition, it also designates to offer economic exchanges between mainland China and Taiwan.

The bank clocked sales revenue of 2.71 billion yuan ($403 million) and a net profit of 968 million yuan ($144 million) in the first half of 2020. Its annual earnings in 2019 stood at 4.5 billion yuan ($671 million).

Xiamen Municipal Finance Bureau will remain the largest shareholder in Xiamen Bank after the IPO with an 18.19 per cent stake, down 2.02 per cent. Fubon Financial Holding will remain the second-largest shareholder with 17.95 per cent, followed by Beijing Shengda Xingye Real Estate Development (9.59%) and Chinese men’s clothing brand Septwolves (8.01%).

Fubon had initially made a strategic investment in Xiamen Bank in 2008, which was re-upped in 2018. The bank is also backed by Xiamen Port Holding Group, realty developer Zhengrong Group, textile and garment import & export company Jiangsu Sainty Corp, Xiamen Fig Group, and Foshan Electrical and Lighting.

Beijing-based China Securities is serving as the lead underwriter for the deal. Xiamen Bank will float the shares under the symbol “601187”.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.