Founder Securities, a mid-sized mainland brokerage, plans to launch an initial public offering on the Shanghai Stock Exchange that is expected to raise about 10 billion yuan (HK$12 billion) amid a market downturn.
The securities firm said in a preliminary prospectus that it plan to float 1.5 billion shares, or 24.6 per cent of its enlarged capital, but did not give a targeted size for the offering.
It will be the first mainland brokerage to go public this year.
Based on the valuations of listed brokerages, it could net about 10 billion yuan on the market, analysts said. Founder, the 16th largest mainland brokerage, said it would use the proceeds to expand outlets and bolster its investment banking business.
The Hunan-based company owns 66.7 per cent of Credit Suisse Founder, a joint-venture investment bank with Credit Suisse.
The China Securities Regulatory Commission will review Founder's IPO application on Monday. It is likely to get the go-ahead since the regulator has been encouraging domestic brokerages to issue IPOs for expansions.