everbright securities

Hopes dividend payout will attract investors to deal at a time of industry transformation.

British insurer Prudential and Taiwan’s Mercuries Life Insurance are among eight cornerstone investors in the Chinese brokerage’s $1.2 billion H-share offering.

The Shanghai-based brokerage gauges market demand for a Hong Kong share sale that has been delayed since the beginning of the year.

Chinese securities firm earnings are under pressure as brokerage fees come off their elevated 2015 levels, making it harder for ECM bankers to bring new offerings to market.

Daniel Ng, who left China Merchants Securities (HK) last October, has returned to Bank of China International to head its investment banking division.

The Shanghai-based securities firm is gearing up for a Hong Kong share sale, joining the race for capital among Chinese brokerage firms.

The share sale by the Chinese brokerage comes at a time when investors have become conscious that investing in new stocks is not always a sure bet.