Cinda was set up in the late 1990s to deal with an estimated 1.4 trillion yuan worth of bad assets amassed by mainland banks. It was expected to raise as much as US$3 billion through a Hong Kong listing in the fourth quarter of 2013.
Manager of bad assets prices shares at top end while Qinhuangdao Port goes for bottom figure
China Cinda Asset Management plans to sell shares in a Hong Kong initial public offering at near the top end of a marketed price range to raise about US$2.5 billion, said two people with knowledge of the matter.
China Cinda Asset Management, the first mainland bad-loan manager to seek a Hong Kong stock market listing, said it plans to increase the leverage of its balance sheet with a view to future growth on the back of an ample capital base.
China Cinda Asset Management is poised to begin pre-marketing for a US$2.5 billion share sale, after receiving listing approval from the Hong Kong stock exchange, bankers working on the deal say.
Hong Kong's listing market is on course for another year-end rush, with about 20 companies planning to launch share offerings. The listing hopefuls aim to raise at least HK$30 billion in total, including Cinda Asset Management's US$2.5 billion offer and Qinhuangdao Port's US$500 million plan.
Cinda Asset Management, one of China's big four state-owned debt clearing agencies, is expected to apply for a Hong Kong listing next month, after a weekend "beauty parade" and talks with potential underwriters, according to bankers with direct knowledge of the deal.