China Minsheng Banking Corp will restart its Hong Kong initial public offering plan to strengthen its capital adequacy and profitability. The board of the Shanghai-listed bank unanimously approved the Hong Kong listing plan at a board meeting on Friday, the company said in an announcement. Shareholders will be asked to approve the plan at a meeting on June 22. Once the bank has secured the approval of shareholders, it would sell shares within the next 18 months. The actual share sale proposal would depend on the market sentiment and progress in seeking regulatory approval, the announcement said. The bank is expected to issue H shares amounting to not less than 15 per cent of the enlarged share capital, with an over-allotment option of 15 per cent. Based on the company's issued share capital of 18.8 billion shares, the company would issue 3.818 billion H shares. It will be the second attempt by the lender to list in Hong Kong after it called off a plan to raise US$880 million at HK$5.28 per share in June 2005, as the market was cool on the high valuations of the bank at that time. The pricing of the shares will depend on the market's response as well as the investment banks' valuation during the share sale process. The bank will also consider selling shares to strategic shareholders and institutional investors. 'The net proceeds after cost will be used to boost the core capital, increase the capital adequacy, boost profitability and support the sustainable growth of the bank,' the bank said. The bank's capital adequacy ratio fell to 9.22 per cent at the end of December, which was lower than the 10 per cent minimum required by the mainland's banking regulator. The nation's 14 publicly traded banks had an average capital adequacy ratio of 13.4 per cent. The bank said in April it planned to sell more bonds to strengthen its balance sheet which had been depleted by lending and acquisitions. In June 2007, Minsheng Bank had raised 18.1 billion yuan (HK$20.45 billion) by selling 2.38 billion shares at 7.63 yuan per share to increase capital adequacy, business expansion and making bond investment. The net proceeds had been fully used up by the end of last year, the bank revealed. The bank, founded by 59 private investors, aims to increase profit 35 per cent this year.