July 23, 2010 / 1:29 AM / 9 years ago

CITIC Group eyes $12 billion HK IPO next year: report

HONG KONG (Reuters) - CITIC Group is considering a $12 billion listing in Hong Kong, a move that can help the state-owned conglomerate raise its profile and reduce debt, the South China Morning Post reported.

The listing of the conglomerate could take place by the end of next year, the newspaper said citing a media report.

The conglomerate, which has eight listed units covering banking, securities, telecommunications, cable television and resources, has expressed its desire to list property and manufacturing assets but a group listing would appear to be a different strategy, the newspaper said.

Fundraising would not be the main motivation for listing of the entire group but it may do so as Beijing wishes to have international recognition of its state-owned flagships, the newspaper said citing a senior investment banker.

Analysts and bankers say the state-owned conglomerate will need to include better assets to attract investors.

CITIC owns 44 subsidiaries in Hong Kong, the United States, Canada, Australia, and New Zealand in banking, industrial investment and service industries, the paper added.

CITIC Group’s listed units in Hong Kong include CITIC Pacific (0267.HK), CITIC Bank (0998.HK), CITIC Resources (1205.HK), CITIC 21CN Co Ltd (0241.HK) and Asia Satellite (1135.HK), Chinese daily Ta Kung Pao said.

Reporting by Donny Kwok; Editing by Jacqueline Wong

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