POSTAL Savings Bank of China Co., moving closer to the world’s biggest share sale this year, will seek listing approval this week for a Hong Kong initial public offering (IPO) that could raise about US$8 billion, sources said.

    The Beijing-based bank plans to seek approval from the Hong Kong bourse today, according to the sources. Postal Savings Bank, which has more outlets than any listed bank, aims to list as early as September, sources said earlier this year.

    Postal Savings Bank joins Bank of Tianjin Co. and China Zheshang Bank Co. in selling shares in Hong Kong to fund expansion. It reported an 11 percent increase in first-quarter profit as it pared provisions for bad loans, according to pre-listing documents filed with the Hong Kong exchange.

    The lender has also plunged into shadow banking arrangements that could make investors question its reputation as sleepy and safe.

    Postal Savings Bank’s pre-listing documents disclosed 953 billion yuan (US$144 billion) in interbank investments in special purpose vehicles, which can include holdings of wealth management products, trust investment plans, asset management plans and securities investment funds. The holdings are up more than 500 percent since 2013.

    Mainland financial companies that listed in Hong Kong this year have gained an average 1.1 percent from their offer prices when adjusted for deal size.

    Hong Kong’s initial public offering share sales have raised US$9.7 billion in 2016, down from US$20.1 billion for the same period last year.

    An US$8 billion IPO would be the largest since e-commerce billionaire Jack Ma’s Alibaba Group Holding Ltd. priced its US$25 billion New York share sale in September 2014. (SD-Agencies)