Bank of Lanzhou's IPO to debut on Shenzhen Stock Exchange - China Knowledge
Jan 14, 2022 (China Knowledge) - Bank of Lanzhou (001227) to start trading on the Shenzhen Stock Exchange's Main Board Jan 17, next Monday. The firm has issued 569.57 mln shares priced at RMB 3.57 per share raising RMB 2.03 bln. Its price-to-earnings ratio (PE) stands at 22.97. During subscription the IPO was 738 times oversubscribed.
China Securities acts as the lead underwriter and sponsor for the IPO.
Bank of Lanzhou Co., Ltd. operates as a commercial bank. The Company provides loans, deposits, settlement, wealth management, investment, online banking, and other banking services. Bank of Lanzhou provides services for enterprises and individuals.
In FY 2020, Bank of Lanzhou garnered a total revenue of RMB 7.3 bln, down 4% YoY. In terms of net income, it achieved RMB 1.53 bln, rising 3% YoY. In the first three quarters of 2021, the company reported revenue of RMB 5.98 bln, a YoY increase of 31%, and its net profits reached RMB 1.29 bln, up 103% YoY.
The company is in the banking industry that is currently made of 41 counters in Shanghai and the Shezhen Stock Exchange with a total combined market capitalization of RMB 10,329 bln. The banking industry’s index is up 3.98% year-to-date, ranking it the 24th place among all 29 broad industry groupings.
Industrial and Commercial Bank of China Limited (601398) takes up the top spot in terms of sales in the industry, reporting RMB 882.67 bln of sales in 2020, with a net profit of RMB 315.91 bln, at 5 times PE. The second largest is China Construction Bank Corporation (601939), a total revenue of RMB 755.86 bln and a net profit of RMB 271.05 bln, at 5 times PE. Agricultural Bank of China Limited (601288) ranked third. It garnered a total revenue of RMB 657.96 bln last year, and a net profit of RMB 215.93 bln, with 4 times PE.
The average industry’s PE for the same or similar stocks on Hong Kong Exchange (HKEx) and the U.S. stock markets for banking is 7 times and 16 times, respectively. On a year-to-date basis, the industry’s index on the HKEx rises 17.17% and the U.S is up 46.41%.
There will be another 2 IPO debut next Monday, Jiayuan Science and Technology Co.,Ltd. (301117) and Dezhou United Petroleum Technology Co.,Ltd. (301158).
Since January, a total of 521 companies have listed on either Shanghai or Shenzhen Stock Exchange, most are mainly in the machinery equipment, electronics and pharmaceutical and biological industries.
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