CitiGroup Partner Orient Securities Eyes US$1 Billion Hong Kong IPO

April 13, 2016

NewsStandOnline.Net (13-April-2016): CitiGroup Inc.’s joint venture partner Orient Securities Co. Ltd plans to raise US$1 billion or more in an initial public offering in Hong Kong.

The Shanghai-based brokerage firm will be one of the first major Chinese brokers to list shares in Hong Kong since the meltdown in China’s stock market last summer, the newspaper said.

Citigroup, Goldman Sachs Group Inc. and Nomura Holdings Inc. are handling the share sale. Orient Securities is one of at least three big Chinese securities firms looking to raise money in Hong Kong this year.

CitiGroup Partner Orient Securities Eyes US$1 Billion In Hong Kong IPO

China Merchants Securities Co. Ltd and Everbright Securities Co. Ltd are also considering multibillion-dollar Hong Kong IPOs.

Several Chinese brokerages have yet to recover from last year’s stock market plunge in the mainland.  Guolian Securities Co. Ltd listed in June 2015 just as the Chinese stock market spiraled downward.

Its shares closed at HK$4.23 last night, down from its IPO price of HK$8.  Hengtai Securities Co. Ltd is down 10 percent since going public in October.

Citigroup formed Citi Orient, its partnership with Orient Securities, in 2012.  The joint venture is allowed to underwrite stocks and bonds, and advises on mergers and acquisitions. Citigroup owns one-third of the joint venture.

Orient Securities’ IPO won’t alter the Citigroup joint venture, which is a separate entity, the report said.