The first bank stock is coming in 2022!
On January 5, Bank of Lanzhou will open offline and online subscription. On January 6, Bank of Lanzhou will release the online subscription and offline preliminary placement results.
Bank of Lanzhou is the first local joint-stock commercial bank with independent legal person status in Gansu Province. If the IPO is completed and listed, Bank of Lanzhou will become the first A-share listed bank in Gansu Province and the 42nd listed bank in the A-share market.
By the end of September 2021, the total assets of Bank of Lanzhou had exceeded 400 billion yuan. From January to September 2021, the operating income of Bank of Lanzhou reached 5.982 billion yuan and the net profit attributable to the parent company was 1.254 billion yuan.
asset scale exceeds 400 billion yuan
According to the prospectus, in June 1997, Lanzhou bank was established on the basis of 55 urban credit cooperatives and one credit union in Lanzhou. As of the issuance of new shares, the main shareholders of Lanzhou bank shares holding more than 5% of the shares were Lanzhou Municipal Bureau of finance, Lanzhou state investment, Huabang holdings, Tianqing real estate and Shengda Group.
The number of shares issued by Bank of Lanzhou this time is 570 million, and the issue price per share is 3.57 yuan. After deducting the issuance expenses, the net amount of raised funds is 1.968 billion yuan, which is mainly used to supplement the capital.
Source: prospectus of Bank of Lanzhou
As of September 30, 2021, the total assets of Bank of Lanzhou reached 400.701 billion yuan. From January to September 2021, Lanzhou bank realized an operating revenue of 5.982 billion yuan, a year-on-year increase of 30.75%; The net profit attributable to the parent company was 1.254 billion yuan, an increase of 108.86% over the same period last year.
Source: prospectus of Bank of Lanzhou
According to preliminary calculation, Bank of Lanzhou expects the operating revenue to be RMB 7.815 billion-7.932 billion in 2021, with a year-on-year increase of 7.00% – 8.60%; The net profit attributable to the parent company is expected to be RMB 1.527 billion-1.637 billion, with a year-on-year increase of 2.29% – 9.66%.
According to the latest “Top 1000 global banks in 2020” published by the British banker magazine, Bank of Lanzhou ranks 359 according to the first-class capital ranking; According to the ranking of asset scale, Lanzhou Bank ranks 334.
higher non-performing loan ratio
For the investment value of Lanzhou bank, some people in the industry recognized it.
Zhongtai Securities Co.Ltd(600918) said one belt, one road and one western region, will further expand the economic development of Gansu. Lanzhou bank has regional advantages and strategic development opportunities. Gansu has a regional economic development opportunity. In addition, relying on its geographical advantages and marketing strategy, Lanzhou bank has formed a regional competitive advantage, ranking first in the market share of the banking industry in Gansu Province.
Risks also exist. Lanzhou bank reminded investors in the prospectus that the bank could not effectively maintain the loan quality. As of June 30, 2021, December 31, 2020, December 31, 2019 and December 31, 2018, the bank’s non-performing loan balance was RMB 3.654 billion, RMB 3.407 billion, RMB 4.304 billion and RMB 3.683 billion respectively, and the non-performing loan ratio was 1.71%, 1.75%, 2.44% and 2.25% respectively.
Bank of Lanzhou said that in recent years, the balance of non-performing loans and non-performing loan ratio were high, which was mainly affected by the macroeconomic situation. The repayment ability of some enterprises decreased, and the bank also lowered some loan ratings.
How did bank shares perform on the first day of listing?
According to the China Securities Journal · China Securities Taurus reporter, since 2016, a total of 25 banks have been listed on a shares, rising on the first day of listing, and the closing price of 20 banks on the first day of listing has increased by more than 40% compared with the issue price.
However, five days after listing, the trend of bank stocks showed obvious differentiation. Among them, 11 banks increased by more than 60%, but 7 banks fell, and some banks fell by more than 20%.
(China Securities Journal)
