China State Shipbuilding Corporation (CSSC), one of the two state run shipbuilding conglomerates in China, is going to support the IPO of state run bank Postal Savings Bank of China with $2bn.
According to a Wall Street Journal report, Postal Savings is close to securing a roughly $2bn cornerstone commitment from CSSC ahead of its IPO, which is expected to raise more than $7bn.
Postal Savings received approval from the China Securities Regulatory Commission for the IPO this week and will apply for approval at Hong Kong Exchanges and Clearing. The IPO is expected to take place at the end of September or the beginning of October.
CSSC controls a number of major shipyards in China including Hudong Zhonghua Shipbuilding, Jiangnan Shipbuilding, Waigaoqiao Shipbuilidng and Guangzhou Longxue Shipbuilding.