StanChart to list later this month
By Alex Frew McMillan
HONG KONG, China -- Standard Chartered plans to float its stock on October 31 in Hong Kong, likely at a slight discount.
The London-based bank specializes in emerging markets and filed for a listing in September. It had originally planned to list last year but shelved its plan after the September 11 terror attacks in the U.S.
The offering is expected to raise between $300 million and $500 million.
StanChart, as the bank is known, is the fourth-biggest retail bank in Hong Kong. It wants to go public to raise its profile in the city and boost its investor base. (Full story)
But times are hard in this market. Two recessions in four years have driven up bankruptcies, business failures and credit-card defaults.
StanChart originally sought to issue up to 5 percent of its capital. It is reportedly planning to sell its stock at a discount of up to 5 percent to its London market price as of October 25.
The bank is considering buying back some of its shares in London with the money raised in Hong Kong, to prevent dilution in its stock.
Investment bank Goldman Sachs is lead managing the offering with Cazenove.
