On 10 December 2019, Postal Savings Bank of China Co., Ltd. (“PSBC”) successfully made its debut on the Shanghai Stock Exchange (stock code: 601658), offering 5,172,164,200 A-shares (before exercising over-allotment option) at RMB 5.50 each and raising up to RMB 28.447 billion. This deal marks the largest A-share IPO in 2019. A full exercise of the over-allotment option will push the total amount raised to RMB 32.714 billion, making the deal the largest A-share listing since 2010, and historically the fourth, and over the recent decade the first, A-share listing to include a greenshoe option. The deal also marks the last “A+H” dual listing of China’s large state-owned commercial banks.
Established in 2007, PSBC is a leading large-scale retail commercial bank in China listed in Hong Kong in September 2016. With approximately 40,000 outlets, PSBC has over 600 million individual customers and strategically focuses on providing financial services to Sannong customers, urban and rural residents and SMEs.
As the legal counsel to co-sponsor and lead underwriter, KWM participated in the deal at all stages from the legal due diligence, drafting and amendment of the prospectus, project application, responses to the comments to issuance and listing. KWM assisted the issuer and the co-sponsor in completing the issuance and listing efficiently. This is another milestone project that KWM assisted PSBC to complete after the Bank’s IPO in Hong Kong in 2016 and its private placement of preferred shares overseas in 2017.
This deal was led by partners Zhou Ning and Liu Sijia.