China's CITIC Bank expects to raise more than 30 billion HK dollars (3.8 billion U.S. dollars) via its Hong Kong IPO, said a company source on Wednesday.
The bank says it will use the funds to help raise its capital adequacy ratio.

China's seventh largest bank has seen a huge wave of interest from institutional investors since it started road shows on Tuesday in Hong Kong.

Its shares are likely to be offered at between 4.72 HK dollars to 6.17 HK dollars, said an insider.

The bank witnessed quintuple subscriptions on Tuesday. Analysts estimate the price per share will possibly exceed six yuan in view of the huge demand and the keenness of institutional investors on the Chinese mainland.

Four subscribers, including Japan's Mizuho Corporate Bank, the China National Council for Social Security Fund, PICC Holding Company and China Life Insurance Group, have pledged to buy shares valued at 1.6 billion HK dollars (205 million US dollars).

CITIC International Financial Holdings Ltd. and Spain's second largest bank BBVA will subscribe shares valued at 1.2 billion U.S. dollars, said an insider.

China's commercial banks are not allowed to offer all-round financial services at present.

CITIC Bank, supported by its parent company CITIC Group's activities that include equity and fund management, is an excellent long-term bet, said experts.

CITIC bank has been promoting its A shares since receiving approval for its Shanghai IPO on April 2 from the China Securities Regulatory Commission.

The bank received approval to list on the Hong Kong stock exchange in March.

If all the shares in the dual IPOs are sold they will account for 18.77 percent of the bank's total shares.

The bank is scheduled to announce the price per share on April 23.

With assets of just under 100 billion U.S. dollars, CITIC Bank reported 3.73 billion yuan in net profit in 2006, up from 3.15 billion yuan in 2005. The bank expects its net profit to hit 5.7 billion yuan in 2007.

CITIC Bank is the second company to simultaneously list on the Shanghai and Hong Kong stock exchanges after the Industrial and Commercial Bank of China (ICBC). Last year ICBC's IPO raised more than 19 billion U.S. dollars.

Editor: Yan