China Everbright Bank, a mid-sized lender, raised over $1.6 billion from cornerstone investors on Friday for a planned initial offering in Hong Kong that could become the city's biggest of the year.
The Beijing-based bank's IPO is expected to raise up to $2.8 billion. It is planning to list on the Hong Kong Stock Exchange on December 20, its third attempt to list in the Asian financial hub.
US Insurer Prudential Financial Inc., insurer Sun Life Financial Inc. and China Shipping Group are among over 10 cornerstone investors that have committed to the bank's IPO.
Cornerstone investors are given the option to buy vast portions of stock in an IPO if they agree to hold the shares for a certain period.
Everbright Bank, which is listed in Shanghai, plans to sell five billion shares with a price range of HK$3.86 to HK$4.30 ($0.49 to $0.55) each.
The bank first raised its Hong Kong IPO plan in 2011, seeking to raise as much as $6 billion, but later scrapped it due to weakness in the domestic and global economies.
It revived the listing plan in May of last year, scaling back the size to around $1.4 billion, but later postponed it due to market conditions.
The IPO could surpass state-run debt management firm China Cinda Asset Management which raised $2.5 billion on Thursday for its proposed IPO in the southern Chinese city scheduled for December 12.
The Asian financial hub was the world's top IPO venue from 2009 to 2011, but took a hit after Chinese companies grew worried about slow economic growth last year.
Sinopec Engineering, the engineering arm of state-owned Chinese oil giant Sinopec, raised $1.8 billion for its May IPO, in one of the biggest deals of the year.
-- Dow Jones Newswires contributed to this story --