CPPIB, Temasek join $7b pre-IPO round for China's PSBC

A consortium of foreign and domestic investors has purchased a nearly 17% stake in the company, PSBC president Lu Jiajin said in a press conference. While the company did not disclose the size of individual investments, CPPIB said in a separate release that it had committed RMB3.2 billion.

PSBC is said to be planning to raise as much as $10 billion in a Hong Kong IPO, which could happen as early as next year.

In addition to CPPIB and Temasek, the foreign participants include UBS, J.P. Morgan, DBS and the International Finance Corporation (IFC). The domestic investor roster features Ant Financial, the payments affiliate of Alibaba Group, Tencent Holdings, China Telecom and China Life Insurance.

In a regulatory filing, China Life said it had committed RMB13 billion for a stake of not more than 5%, implying that PSBC's valuation could be as high as RMB260 billion.

"China is an important market for a long-term investor like CPPIB," said Mark Wiseman, president and CEO of the pension plan. "We view this investment as a great opportunity to work alongside a highly respected financial institution to participate in the future growth and rising consumption patterns of the Chinese population."

CPPIB makes direct private equity investments alongside portfolio GPs, as evidenced by its participation in the MBK Partners-led buyout of South Korean retailer Homeplus. PSBC more likely falls within the group's relationship investing remit, which typically involves making pre-IPO commitments to established companies.

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• Topics
• Greater China
• Financials
• Investments
• China
• CPPIB
• JPMorgan Chase & Co
• Temasek Holdings
• IFC
• Tencent
• China Life
• Financial Services
• IPO