China Merchants Bank, the 6th largest lender in China, will offer its shares for public subscription in Hong Kong starting from Friday, aiming to raise up to 2.4 billion U.S. dollars.

The bank is set to offer 2.2 billion shares in the initial public offering, priced between 7.30 HK dollars (0.94 U.S. dollar) and 8.55 HK dollars (1.1 U.S. dollars) each . It has been listed on the Shanghai stock exchange since 2002.

The bank's chairman, Qin Xiao, said on the eve of the flotation that the bank would expand its credit card business and provide more new products to sharpen its competitive edge in China

China Merchants Bank is the first commercial bank in China to list in the country's A share market before listing in Hong Kong.

The bank's assets stand at 824.3 billion yuan (103.6 billion U. S. dollars). It has loans totaling 531.6 billion yuan (67.4 billion dollars) and holds deposits of 703.6 billion yuan (88.5 billion dollars).

The bank estimated that its profits for 2006 would jump 47 percent to 5.5 billion yuan (691 million dollars).

Its share offer closes Sept. 13, with the share price to be set two days later. Dealing commences on Sept. 22.

Source: Xinhua