Chinese broker Guotai Junan raises US$2.1bil in HK share offer

Guotai Junan Securities Chairman Yang Dehong (R) and Vice President Zhu Jian attend a news conference on the company's initial public offering in Hong Kong, China March 27, 2017. - REUTERS

HONG KONG: Guotai Junan Securities Co Ltd, China’s third-largest brokerage by assets, raised US$2.1bil in a rare fixed-price share offering that was the biggest stock sale in Hong Kong in six months, a source with direct knowledge of the deal said.

The Shanghai-listed company offered 1.04 billion new shares at a fixed price of HK$15.84 each, putting the total deal at HK$16.5bil (US$2.12bil). Guotai Junan’s deal was the largest stock sale in the city since the US$7.63bil initial public offering of Postal Savings Bank of China in September.