Davis Polk Advises Postal Savings Bank of China Co., Ltd. on Its HK$56.6 Billion ($7.3 Billion) Initial Public Offering

Davis Polk advised Postal Savings Bank of China Co., Ltd. on its initial public offering and listing on the Main Board of The Stock Exchange of Hong Kong Limited and an international offering in reliance on Rule 144A and Regulation S. PSBC offered 12.1 billion shares at HK$4.76 per share, raising HK$56.6 billion (approximately $7.3 billion) prior to any exercise of the over-allotment option, making it the world's largest initial public offering in two years. PSBC’s shares are traded on HKEX from September 28, 2016.

PSBC is a leading retail bank in China with the largest distribution network, largest customer base and superior asset quality. Established in 2007, PSBC is the youngest PRC large commercial bank and has significant growth potential. As of March 31, 2016, PSBC had total assets of RMB7.70 billion, total deposits of RMB6.73 billion and total loans of RMB2.66 billion, ranking fifth, fifth and seventh among PRC commercial banks, respectively. According to The Banker’s list of “Top 1000 World Banks,” PSBC ranked 22nd in the world in terms of total assets as of December 31, 2015.

The Davis Polk corporate team included partners Bonnie Y. Chan, Antony Dapiran and Li He, associates Stephenie Fung and Nicholas Cheung and registered foreign lawyer Xiaotong (Lisa) Yuan. Counsel Alon Gurfinkel and associates Omer Harel provided tax advice. Counsel Jeanine P. McGuinness provided OFAC advice. Associate Brantley Hawkins provided 1940 Act advice. Members of the Davis Polk team are based in the Hong Kong, Beijing, London, New York and Washington DC offices.