Key dates:
Public sale deadline: January 11, 2018 at 12:00 p.m.
Public Notice Application Results: January 17, 2018
Listing date: January 18, 2018
Joint Guarantee Sponsor:
CMB International Finance Co., Ltd.
CCB International Finance Co., Ltd.
Huatai Financial Holdings (Hong Kong) Limited
Guotai Junan Finance Co., Ltd.
Bank of China International Asia Limited
Statistical data summary:
Number of shares offered globally: 2,212,000,000 shares
Percentage of shares offered in Hong Kong: 10.0%
Offer Price: HK$2.61 to HK$2.77
Estimated amount raised: $5.773 billion to HK$6.127 billion
Admission fee per hand: HK$2,797.91
Group Overview
Ganjiang Bank is the only provincial corporate urban commercial bank in Gansu Province, China. The bank's business network covers the whole of Kampong Province. As of June 30, 2017, the bank's business network included 1 head office sales department, 9 branches, 189 branches, and 2 small and micro branches, covering 81 of all 14 cities, states and 86 counties in Kampong Province. The bank's main business lines include corporate banking, retail banking, and financial market operations. Among them, corporate banking revenue accounted for the largest share of revenue in 2016 (58.5%). The largest component of the bank's corporate loan association is loans issued to corporate customers in the wholesale and retail industries, manufacturing, and agriculture, forestry, animal husbandry and fishing.
Industry Overview
According to the China Banking Regulatory Commission, as of December 31, 2016, a total of 158 banking financial institutions were registered or had provincial branches in Gansu Province. The total assets and net profit categories were RMB 2,449 billion and RMB 24 billion. The compound annual growth rates from 2011 to 2016 were 17.2% and 21.7%, respectively.
Risks
As of 2014, 2015, December 31, 2016, and June 30, 2017, the bank's non-performing loan ratio was 0.39%, 1.77%, 1.81%, and 1.63%. If China's economic slowdown or other reasons lead to a decline in the quality of customer loans, the bank's operating performance may be significantly adversely affected.
valuations
According to the prospectus, assuming that the global offering was completed on June 30, 2017, and that 9.738 billion shares were issued as expected after the stock offering was completed, shareholders should account for the net value range of the consolidated tangible assets adjusted for unaudited notes was RMB 199,086 billion to RMB 202.75 billion, equivalent to the unaudited balance of the adjusted tangible asset value range of HK$2.44 to HK$2.47 billion per share (based on the exchange rate of HK$0.8415 to HK$0.8415).