CICC plans to raise $1bn in IPO

China International Capital aims to start the share sale to raise $1bn in the second half of this year.Bloomberg/BeijingChina International Capital Corp, the country’s first Sino-foreign investment bank, plans to seek about $1bn from an initial public offering in Hong Kong this year, people with knowledge of the matter said.The Beijing-based company aims to start the share sale in the second half, said the people, who asked not to be identified as the information is private. It has yet to seek approval from the city’s stock exchange, they said.The once-dominant investment bank, which has lost ground to rivals, is pushing ahead after a delay caused by the departure of its long-time chief executive officer Levin Zhu in October.The firm hired Hopu Investment Management Co partner Bi Mingjian as its CEO in a move that should help smooth the listing plan, a person with knowledge of the matter said.“With strength on both IPOs and research, CICC is set to benefit from China’s stock-market rally,” Edmond Law, a Hong Kong-based analyst at UOB-Kay Hian Holdings, said by phone.“Strong earnings by Chinese brokerages and market reforms will also help such companies sell shares.” CICC will act as the lead sponsor for its IPO, the people said. A Beijing-based spokeswoman for the investment bank declined to comment.Morgan Stanley helped create CICC in 1995 with China Construction Bank Corp as part of efforts to develop the country’s capital markets. The Wall Street firm sold its 34.3% stake to investors including KKR & Co, TPG Capital and GIC Pte in 2010 for about $1bn.CICC ranked ninth among underwriters of initial share sales in Hong Kong last year with a 4.2% market share, according to data compiled by Bloomberg. It ranked second among arrangers of domestic IPOs this year, up from 10th place in 2014, the data show.Citic Securities Co, China’s largest brokerage by market value, has gained 94% in Hong Kong since its first-time share sale in September 2011.