By Martin Mou 
 

Postal Savings Bank of China Co. (601658.SH) opened 1.8% higher in its Shanghai debut on Tuesday, marking the biggest stock listing in nearly five years.

Shares began trading at 5.60 yuan ($0.80) compared with the initial IPO price of CNY5.50. Shares are currently at CNY5.61.

The bank, which is also listed in Hong Kong, raised CNY28.0 billion ($3.97 billion) in net proceeds. Postal Savings Bank also has an overallotment option, which if exercised, could see total fund raising touch CNY32.21 billion.

This would overtake Guotai Junan Securities Co.'s (601211.SH) CNY30.0 billion offering in June 2015, according to Dealogic.

Postal Savings Bank plans to use the IPO proceeds to boost its capital.

The bank is the latest Hong Kong-listed Chinese bank, after China Zheshang Bank Co. (2016.HK) last month and Chongqing Rural Commercial Bank Co. (3618.HK) in October, to return to China's onshore market for secondary listings, to boost their capital buffers as the country's economy slows.

Write to Martin Mou at martin.mou@wsj.com

(END) Dow Jones Newswires

December 09, 2019 21:14 ET (02:14 GMT)

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