CITIC Securities, the biggest listed brokerage on the mainland, is planning to raise about US$1.5 billion in a Hong Kong share sale with a flotation of its shares as early as September, a report said yesterday.

    The firm will seek approval later this month for a listing in the southern Chinese city, Dow Jones Newswires reported, quoting unnamed sources.

    The Financial Times said the brokerage, which is already listed in Shanghai, planned to raise as much as US$2 billion in its flotation.

    Citic Securities could sell up to 40 percent of the shares in the offering to cornerstone investors in a bid to ensure the offering’s success, the IFR reported Tuesday.

    Citic Securities last month hired Bank of America Merrill Lynch, Credit Agricole’s CLSA unit, HSBC and Morgan Stanley to help arrange the offering.

    As part of efforts to internationalize its business and brand name, Citic Securities said in June it would pay US$374 million for a stake in Credit Agricole’s CLSA and Cheuvreux brokerage to grow beyond its home turf.

    Citic Securities’ planned share sale comes as some firms back off plans to list in Hong Kong, the world’s biggest initial public offering (IPO) market last year.

    A recent market meltdown has sparked fears that Hong Kong may see delays in some US$19 billion worth of share sales from a dozen companies planning to list on the city’s exchange.

    Beijing Jingneng Clean Energy, a unit of the Beijing Municipal Government, has postponed its US$630 million Hong Kong share sale, while Italian luxury goods maker Prada made a lackluster debut in the financial hub in June after raising a lower-than-expected US$2.14 billion.

    Australian miner Resourcehouse also shelved an IPO originally slated to raise as much as US$3.6 billion, citing weak market conditions.

    However, New China Life Insurance is reportedly planning to press on with a US$4 billion dual listing in Hong Kong and Shanghai, while China’s top hypermarket operator Sun Art Retail Group soared 47 percent on its Hong Kong trading debut last month, after raising US$1.06 billion. (SD-Agencies)