On December 30, 2019, Bank of Guizhou Co., LTD (“Bank of Guizhou”, stock code: 6199.HK), the only provincial city commercial bank in Guizhou Province, was successfully listed on the main board of the Hong Kong Stock Exchange, becoming the first HKEX-listed financial institution from Guizhou Province. AMTD acted as a Joint Global Coordinator and Joint Bookrunner of Bank of Guizhou’s H-Share IPO, assisting the company to successfully land on the international capital market. This transaction is the largest IPO among all Asian banking IPOs in 2019, the seventh PRC regional bank’s IPO completed by AMTD, after Jinshang Bank (2558.HK), Jiangxi Bank (1916.HK), Zhongyuan Bank (1216.HK), Guangzhou Rural Commercial Bank (1551.HK), Bank of Tianjin (1578.HK) and Bank of Qingdao (3866.HK), and also the 21st IPO completed by AMTD in 2019, demonstrating AMTD’s strong execution capability and industry leadership in mega IPOs, especially the PRC regional banks’ H-Share IPOs. As a result, AMTD has acted as the Global Coordinator (the most senior role in underwriting) of all PRC regional banks’ Hong Kong IPOs and overseas preferred share offerings in 2019.
Bank of Guizhou offered a total of 2.2 billion shares with an offer price at HK$2.48 per share, raising around US$700 million (pre-shoe). After more than 20 years of rapid development, city commercial banks have become an important part of China’s banking system. As the only city commercial bank initiated by the Guizhou Provincial Government, Bank of Guizhou has received strong support from the local government and shareholders. With the significant development of Guizhou’s economy supported by the preferential policies of the Chinese government, Bank of Guizhou has also entered the fast lane. Only seven years since its establishment, the young Bank of Guizhou has stepped into the international capital market.
AMTD has long-term commitment in the PRC regional bank sector and has been playing a prominent and influential role in various milestone IPOs. AMTD is a leading financial services provider for PRC regional banks, helping them gain access to international capital markets and promote their internationalization strategy. In the past four years, AMTD has led seven H-Share IPOs of PRC regional banks, participating in almost all Hong Kong IPOs of PRC regional banks with an aggregate proceeds of over US$6.2 billion. In all of these transactions, AMTD acted as Joint Global Coordinator and lead underwriter. Since the inception of AMTD’s investment banking business in October 2015, AMTD has also led the AT1 capital preferred share offerings of five PRC regional banks, with an aggregate proceeds of US$6.7 billion. Among these offerings, AMTD acted as Joint Global Coordinator, a prominent and influential role in the syndicate, for almost all transactions. AMTD has established the leadership in China regional banks’ offshore transactions, including the H-share IPO and AT1 capital preferred share offerings. AMTD is also the largest independent asset manager in Asia in serving PRC regional banks as measured by AUM.
With the development of the “Belt and Road Initiative” and the construction of the Guangdong-Hong Kong-Macao Greater Bay Area, more cooperation opportunities are mapped out by strengthening communication and interconnection between Hong Kong and PRC. PRC regional banks have also made full use of Hong Kong’s international capital market to achieve leapfrog development. To better facilitate the communication between Hong Kong and leading PRC regional banks, AMTD, under the witness of H.K.S.A.R government, launched the “Regional Banks+ Strategic Cooperation Alliance” together with regional banks including Zhongyuan Bank, Jiangxi Bank, Guangzhou Rural Commercial Bank and Bank of Qingdao, East West Bank and Airstar Bank. The Alliance aims to grasp the opportunities of building a “smart city” in Hong Kong and developing the Guangdong-Hong Kong-Macao Greater Bay Area, and promote the innovation and development in Fintech, smart finance, inclusive finance and green finance by utilizing various resources, mutual cooperation and collaborative synergy.