Citic Securities is selling shares in Hong Kong to raise money for overseas expansion
Temasek Holdings and Kuwait Investment Authority are among early investors who agreed to buy $900m of stock in Citic Securities Co’s initial share sale in Hong Kong, two people with knowledge of the matter said.
The Singaporean state-owned investment firm will invest $150m in the offering, while the Kuwaiti sovereign wealth fund is putting in $200m, said the people, who declined to be identified as the process is confidential.
Citic Securities, China’s biggest brokerage by market value, and rival Haitong Securities Co. are selling shares in Hong Kong to raise money for overseas expansion. Shares of Citic Securities have advanced 9 percent in the past year in Shanghai, where the company went public in January 2003.
Waddell & Reed Financial Inc, a US mutual-fund manager, agreed to invest $300m in the offering, while BTG Pactual SA, a Brazilian investment bank, will purchase $100m of stock, the people said.
China’s National Social Security Fund, Fubon Life Insurance Co and Och-Ziff Capital Management Group each committed $50m to the offering, the people said.
The seven so-called cornerstone investors, who get guaranteed shares in the offering in return for a pledge not to sell their stock immediately, will together account for about half the size of Citic Securities’ sale, the people said.
Raymond Tang, a Beijing-based spokesman for Citic Securities, didn’t immediately respond to a phone call seeking comment on the cornerstone investors.
Jeffrey Fang, a spokesman for Temasek in Singapore, declined to comment.