Shandong International Trust launches H-share IPO in Hong Kong

Tracy Li
The firm offers nearly 677 million shares and hopes to raise up to US$450 million to become China's first successful trust company listing in over two decades. 
Tracy Li

Shandong International Trust Co Ltd became China’s first trust company to launch a H-share initial public offering in Hong Kong today, according to a latest filing from Luxin Venture Capital Group Co, one of its shareholders.

The H-share IPO of 676.5 million shares,which had been approved by the China Securities Regulatory Commission earlier this year, were being offered at an indicated price range of HK$4.46 to HK$5.43 (57 to 70 US cents) per share, allowing the company to raise as much as 2.97 billion yuan (US$450 million), according to reports from the South China Morning Post.   

The company will become the first Chinese trust firm to list successfully since 1994, when Shaanxi International Trust Co and Anxin Trust Co sold shares in the A-share market.

Established in 1987, Shandong International Trust now has 255 billion yuan of assets under management in 2016 to rank 25th in the industry, according to the company. Shandong High-tech Investment Corporation Co Ltd, a wholly-owned subsidiary of Luxin Venture Capital, owns a 6.25 percent stake of the trust company.

China now has 68 trust companies managing combined assets worth 23.1 trillion yuan as of the first half of this year, according to recent data from China Trustee Association.  

The industry has been expanding rapidly in recent years as corporate borrowers turned to  trust firms for funding after facing difficulty getting loans from banks while investors pursued products with higher returns.

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