Sovereign Wealth Funds and Institutional Investors Lock into Cinda’s IPO

Norges Bank Investment Management manages Norway’s massive pool of sovereign wealth. Pivoting toward China, they are joining a group of cornerstone investors committing to purchase US$ 1.1 billion in China Cinda Asset Management Co. as part of its Hong Kong initial public offering (IPO). These cornerstone investors would total 45% of the IPO. Typically, cornerstone investors get a guaranteed allocation but agree to hold the stakes for a set period.

Nearly two-thirds of Cinda’s profits arise from its bad debt restructuring business.

The Cinda IPO would be Hong Kong’s largest IPO of 2013 – as Cinda is aiming to raise a total of US$ 2.5 billion. Cinda hopes to dethrone Sinopec Engineering Group’s US$ 1.8 billion IPO in May 2013. On December 4th, Cinda is set to price the IPO. The range of the IPO is possibly around HK$ 3.00-3.58 per share.

Back then, shedding non-performing loans from the big four banks into asset management companies were authorized by the Chinese government.

Cornerstone Investor Table – China Cinda Asset Management Co.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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