Industrial Securities eyes Hong Kong IPO to bolster financial strength

Industrial Securities, a mid-sized mainland brokerage based in Fujian province, is studying a plan to list shares in Hong Kong to enlarge its capital base following a private share placement to raise 8 billion yuan (US$1.27 billion) on the mainland stock market.

Liu Zhihui, president of Industrial Securities, said on Monday that the company is giving priority to boosting its financial strength to support its investment banking and brokerage segments ahead of a full opening of the mainland’s securities market.

“Capital is becoming increasingly important for the growth of domestic brokerages,” he said. “Industrial Securities is aiming to become an international securities firm with the ability to compete on the international market.”

He would not disclose the time frame and fundraising amount for the potential Hong Kong initial public offering (IPO).

The mainland’s biggest securities firms including Citic Securities and Haitong Securities are already listed in Hong Kong.

Liu said Industrial Securities is taking a gradual approach in expanding its footprint outside the mainland, seeking to offer more brokering, asset management and investment banking services in Hong Kong through its subsidiary – Industrial Securities International.