IFR 02.29.2020

ASIA-PACIFIC

CHINA

BOHAI BANK FILES FOR IPO

CHINA BOHAI BANKûlLEDûWITHûTHEû3TOCKû

Exchange of Hong Kong last Wednesday for

an IPO that could raise about US$2bn–$3bn

this year.

ABC International, CCB International, CLSA

and Haitong International are the joint

sponsors.

The national joint-stock commercial

bank, which counts Standard Chartered as

its second-largest shareholder, also disclosed

INûTHEûlLINGûHOWûTHEûCORONAVIRUSûOUTBREAKû

may affect its business.

Since the outbreak, the Chinese

government has encouraged banks and

lNANCIALûINSTITUTIONSûTOûENHANCEûTHEIRûCREDITû

support to affected enterprises and

individuals.

On February 15, the China Banking and

Insurance Regulatory Commission

announced that it may raise regulatory

tolerance of banks’ non-performing loans to

BUSINESSESûFACINGûLIQUIDITYûDIFlCULTIESûDUEûTOû

the epidemic.

In response to this, Bohai Bank said it has

launched special supportive measures for

QUALIlEDûENTITIESûTHROUGHûOFFERINGûLOANSûATû

reduced interest rates, fee waivers, and

expedited credit approval procedures.

The bank said the outbreak has had no

MATERIALûADVERSEûIMPACTûONûITSûlNANCIALû

results or business operations for now.

However, it also said the outbreak may

affect the ability of micro and small

enterprises to repay their loans, which in

turn may materially and adversely affect its

BUSINESSûlNANCIALûCONDITIONûANDûRESULTS

As of September 30 2019, Bohai Bank’s

loans to micro and small enterprises

amounted to Rmb122bn, representing 26.6%

of its total loans.

Founded in 2005, Bohai Bank also counts

Tianjin TEDA Investment, China Shipping

Investment and State Development &

Investment among its shareholders.

StanChart owns a 19.99% stake, behind

TEDA, which holds 25%.

4HEû#HINESEûLENDERûPOSTEDûAûNETûPROlTûOFû

Rmb6.5bn (US$929m) for the nine months

ended September 30 2019, up 16% over the

same period of 2018. Its total assets stood at

Rmb1.1trn as of September 30 2019, while

its non-performing loan ratio and Core Tier

1 capital adequacy ratio were at 1.77% and

8.17%, respectively.

MEGVII IPO APPLICATION LAPSES

The Hong Kong listing application of

MEGVII TECHNOLOGY lapsed last Tuesday, six

months after the facial recognition

COMPANYûlLEDûIT

The company, which was blacklisted by

the US administration in October, originally

aimed to raise US$500m–$1bn at the end of

last year but was asked to answer more

questions by the Stock Exchange of Hong

Kong after it sought listing approval from

the regulator on November 21.

People close to the deal said the company

STILLûWANTSûTOûLISTûINûTHEûCITYûANDûWILLûRElLEû

THEû)0/ûONCEûITSûUPDATEDûlNANCIALSûAREû

ready, though there is no timeline for the

deal now.

“The company intends to do the deal

after it’s removed from the US blacklist

but the US presidential election this year

could add uncertainty,” said one of the

people. “And now with a global outbreak

of coronavirus, it’s even harder to have a

timeline.”

Another person close to the deal

estimated the IPO will come in the second

half of the year.

-EGVIIûlLEDûITSûLISTINGûAPPLICATIONûONû

August 25. In October, the US Department

74 International Financing Review February 29 2020

WEEK IN NUMBERS

Ï92%

„ BESTORE, A SNACKS MAKER

HEADQUARTERED IN WUHAN, THE

EPICENTRE OF THE CORONAVIRUS

OUTBREAK, BEGAN TRADING ON THE

SHANGHAI STOCK EXCHANGE ON

MONDAY. ITS SHARES QUICKLY HIT

THE 44% UPSIDE LIMIT ON THE FIRST

DAY OF TRADING AND THE 10% LIMIT

IN SUBSEQUENT DAYS TO CLOSE AT

Rmb22.81 ON THURSDAY, UP 92%

US$1.25bn

„ EUROPEAN INDICES FELL 3%-4% ON

MONDAY, MORE IN ITALY, SO RUSSIAN

SEARCH ENGINE YANDEX CAPITALISED

ON A REVERSAL ON TUESDAY MORNING

TO RAISE US$1.25bn FROM FIVE-YEAR

CONVERTIBLE BONDS. STOCKS TRADED

OFF AGAIN IN THE AFTERNOON BUT THE

COMPANY HAD ALREADY CLOSED BOOKS

BY THEN

275bp

„ ASTON MARTIN LAGONDA IS PAYING

UNDERWRITERS 275bp FOR £93.6m

OF UNDERWRITING. THE STRUGGLING

CARMAKER’S £317.2m RIGHTS ISSUE

HAS STRONG SUPPORT FROM MAJOR

SHAREHOLDERS AND LAWRENCE

STROLL’S INCOMING CONSORTIUM SO

LAUNCHED OVER 70% COVERED

39.16

„ THE CBOE VOLATILITY INDEX MORE

THAN DOUBLED IN FOUR DAYS TO REACH

39.16 ON THURSDAY. THE VIX HAD ENDED

THE PREVIOUS WEEK AT 17.08

ASIA-PACIFIC EQUITIES

BOOKRUNNERS: 1/1/2020 TO DATE

Managing No of Total Share

bank or group issues US$(m) (%)

Including all domestic and international deals and rights issues

Source: Refinitiv SDC code: C4a1

1 Morgan Stanley 14 3,267.73 11.4

2 China Secs 5 2,702.20 9.4

3 CICC 15 2,677.38 9.4

4 Citic 7 2,024.37 7.1

5 Goldman Sachs 10 1,355.01 4.7

6 UBS 8 1,114.22 3.9

7 HSBC 7 946.49 3.3

8 BofA 7 936.41 3.3

9 Citigroup 7 924.24 3.2

10 Sinolink Secs 3 642.11 2.2

Total 280 28,596.44

ASIA-PACIFIC EQUITIES (EX-JAPAN)

BOOKRUNNERS: 1/1/2020 TO DATE

Managing No of Total Share

bank or group issues US$(m) (%)

Including all domestic and international deals and rights issues

Source: Refinitiv SDC code: C4a2

1 Morgan Stanley 10 3,056.10 11.5

2 China Secs 5 2,702.20 10.1

3 CICC 15 2,677.38 10.0

4 Citic 7 2,024.37 7.6

5 Goldman Sachs 9 1,295.38 4.9

6 UBS 8 1,114.22 4.2

7 HSBC 7 946.49 3.5

8 Citigroup 7 924.24 3.5

9 BofA 6 908.17 3.4

10 Sinolink Secs 3 642.11 2.4

Total 256 26,688.92

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Bestore share price IPO price

RMB, HOURLY PRICE

10 IFR Equities and SE 2322 p 73 - 86 .indd 74 28 / 02 / 2020 19 : 13 : 55