China Everbright Bank targets up to $3.2 billion in Shanghai IPO

The mid-size bank has set a lower-than-expected price range as worries remain that the downturn in China’s equity markets will continue in the coming months.

China Everbright Bank has set a lower-than-expected price range for its up to Rmb21.7 billion $3.2 billion Shanghai initial public offering, as worries remain that the downturn in China’s equity markets is likely to continue for some time.

The offering price range was set at between Rmb2.85 to Rmb3.1 a share, the bank said in a stock filing to the Shanghai Stock Exchange yesterday. The prices value the lender’s shares at 1.47 times to 1.57 times book value based on its projected earnings in 2010, which is lower than analyst estimates of 1.6 times to 1.7 times and a big discount compared with its peers listed on the Shanghai bourse -- they ...

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