Bank of Jinzhou Rallies After IPO

Bank of Jinzhou (0416) has rallied 12% after its IPO a little over a week ago. Some previous discussion is here: Rubber Meets Road: Liaoning Bank to IPO in Hong Kong

One reason for solid post-IPO performance is the weak pricing, in part due to links with the high-profile Hanergy.

EJ Insight: Hanergy link shakes investor confidence in Bank of Jinzhou IPO
The relationship between Bank of Jinzhou, Hanergy and one of the solar-panel maker’s few known customers, Baota Petrochemical Group Co., has come to light in dribs and drabs.

Last week, Hanergy said it canceled contracts to supply equipment to two customers, one of which is Baota, after they missed a deadline to pay for at least 80 percent of their purchases.

Baota, through a subsidiary, is a major shareholder in the Bank of Jinzhou. The bank, in turn, is one of Hanergy’s lenders.
No surprise then: Bank of Jinzhou Prices Hong Kong IPO Near Bottom End
Bank of Jinzhou Co., a city commercial lender based in northeastern China’s Liaoning province, raised US$794 million in its Hong Kong IPO on Monday, after pricing the deal near the bottom end of the range, according to people with knowledge of the matter.

The bank sold 1.32 billion shares at 4.66 Hong Kong dollars each, near the lower end of a HK$4.64-HK$5.54 indicative price range.
There was only one cornerstone investor:
Hong Kong Tian Yuan Manganese International Trade Co. plans to buy 200 million shares in Bank of Jinzhou’s offering as a cornerstone investor, the terms show.
Much of the pop in Jinzhou shares came in the afternoon trading session on the initial trading day, causing some to suspect intervention. Quartz: A Chinese bank’s IPO pop suggests the “Beijing boost” has come to Hong Kong

Bank of Qingdao (3866) IPOd a little earlier in the month; shares are flat since it started trading. Bank of Zhengzhou (6196) is up next:
Commercial lender Bank of Zhengzhou Co. raised US$656 million in its Hong Kong initial public offering on Wednesday, after pricing the deal at the bottom end of an indicative range, according to people with knowledge of the matter.

The bank, based in Zhengzhou city in central China’s Henan province, sold 1.32 billion shares at 3.85 Hong Kong dollars a share, at the lower end of its HK$3.85 to HK$4.21 expected range.

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