Everbright Securities Raises $1.1 Billion in Hong Kong Offering

(Bloomberg) -- Everbright Securities Co. raised $1.1 billion after pricing its Hong Kong first-time share sale above the midpoint of a marketed range.

The Chinese brokerage sold 680 million shares at HK$12.68 each, after earlier offering them at HK$11.80 to HK$13.26 apiece, according to terms for the deal obtained by Bloomberg on Friday. The final price represents a 38 percent discount to Everbright Securities’ last closing price in Shanghai.

Everbright Securities is selling shares in Hong Kong to expand margin financing and fund potential acquisitions after trading volumes in the Chinese stock market fell this year. The offering will be the city’s second Chinese brokerage listing this year, following the $1.1 billion offering from Orient Securities Co. in June, data compiled by Bloomberg show.

Cornerstone investors including state-owned China Shipbuilding Industry Corp. and China State Construction Engineering Corp. bought $764 million of Everbright Securities stock, accounting for 69 percent of the base offering, according to the terms. China Life Insurance (Group) Co. and U.S. insurer Prudential Financial Inc. were also cornerstone investors in the sale, agreeing to hold their shares for six months in return for early and guaranteed allocation.

China Everbright Capital Ltd., UBS Group AG and Bank of America Corp. are joint sponsors of the listing. Everbright Securities plans to start trading in Hong Kong on Aug. 18, the terms show.

To contact the reporters on this story: Joyce Koh in Singapore at jkoh38@bloomberg.net, Regina Tan in Hong Kong at rtan87@bloomberg.net. To contact the editors responsible for this story: Ben Scent at bscent@bloomberg.net, Elizabeth Wollman