COMMERCIAL bank China Zheshang Bank Co. launched yesterday an initial public offering (IPO) worth up to US$1.75 billion in Hong Kong, the city’s first sizeable new listing this year, as companies step up efforts to raise funds.

    The bank, based in eastern China’s Zhejiang Province, is offering 3.3 billion shares in an indicative range of HK$3.92 (US$0.51) to HK$4.12 each, IFR reported, citing a term sheet of the transaction.

    The shares are equivalent to 19 percent of Zheshang Bank’s enlarged share capital.

    The IPO would be the largest in Hong Kong since a US$1.9 billion listing in December from China Energy Engineering Corp.

    Hong Kong, which replaced New York in 2015 as the world’s biggest IPO market by the amount of funds raised, has seen just US$800 million in new listings so far this year.

    But activity is expected to pick up in the coming weeks with other offerings including an up to US$1 billion deal from commercial lender Bank of Tianjin.

    Zheshang Bank’s IPO secured US$963 million in commitments from cornerstone investors including Zhejiang Seaport Group and Alipay (Hong Kong) Investment, which is part of Alibaba Group Holding Ltd.’s Ant Financial Services Group.

    The IPO is set to be priced Monday next week, with a debut on the Hong Kong stock exchange slated for March 30.

    Zheshang Bank had total assets of 1 trillion yuan (US$153.9 billion) at Sept. 30, up 50 percent from the end of 2014, its pre-listing documents show. (SD-Agencies)