Photo/Tan Yuhan (NBD)

Dec. 10 (NBD) – Shares of Postal Savings Bank of China Co Ltd (PSBC, 601658.SH), a state-owned commercial bank, rose by 2 percent to close at 5.61 yuan (80 cents) on Tuesday in its debut on the A-share market.

Founded in 2007, PSBC is one of the six biggest state-owned banks in China and already landed on the Hong Kong stock market in September 2016.

With the exercise of the over-allotment options (greenshoe options), PSBC is selling about 5.9 billion shares to raise 32.7 billion yuan (4.6 billion U.S. dollars) through the IPO, making it the largest IPO on the A-share market since 2010.

According to the Q3 financial report of PSBC, as of September 30, 2019, the capital adequacy ratio of the bank stood at 13.27 percent, lagging behind the other five biggest state-owned banks.

Dai Zhifeng, a banking analyst from Zhongtai Securities, noted that the listing on the A-share market is expected to raise the bank's core tier 1 capital adequacy ratio.

In the future, PSBC still needs to further increase the ratio via private placement, convertible bonds or other methods to narrow down the gap with counterparts, China Securities added.

Email: lansuying@nbd.com.cn