HONG KONG, March 26 Guotai Junan Securities
, China's third-largest brokerage by assets, is set
to raise $2.1 billion in a rare fixed-price share offering in
Hong Kong, IFR reported on Sunday, citing people familiar with
The Shanghai-listed company plans to sell 1.04 billion
shares at a fixed price of HK$15.84 each, putting the total deal
at HK$16.5 billion ($2.12 billion), IFR, a Thomson Reuters
publication, reported. That would make it the largest stock sale
in the city since the $7.63 billion initial public offering of
Postal Savings Bank of China (PSBC) in September 2016.
Guotai Junan did not immediately reply to a Reuters request
for comment after business hours on Sunday.
The deal will be launched on Monday, with pricing slated for
Friday, IFR said.
The price represents a discount of about 25 percent to
Guotai Junan's closing price of 18.79 yuan in Shanghai on
Friday. A fixed-price share offering is unusual, with most deals
setting an indicative range before deciding on the final
pricing, depending on demand.
Guotai Junan secured about $600 million in commitments from
cornerstone investors for the deal, IFR reported. The company
ranks behind CITIC Securities and Haitong Securities in terms of
assets, revenue and profits, according to the offering
Guotai Junan hired Bank of America Merrill Lynch, Goldman
Sachs, Shanghai Pudong Development Bank International and Guotai
Junan's Hong Kong investment-banking arm - Guotai Junan
International - as joint sponsors for the deal.
($1 = 7.7665 Hong Kong dollars)
(Reporting by Fiona Lau of IFR; Writing by Elzio Barreto;
editing by Susan Thomas)