Bank of Guangzhou withdraws IPO application.

South Financial Media's reporter Pangcheng Guangzhou reported

After years of waiting to be listed on the A-share market, Guangzhou Bank withdrew its IPO application.

South Financial Media's reporter noticed that on January 17, the Shenzhen Stock Exchange announced that due to the withdrawal of Guangzhou Bank's and its sponsor's IPO application, according to Article 62 of the "Shenzhen Stock Exchange Stock Issuance and Listing Review Rules (2024 Revision)", the Shenzhen Stock Exchange decided to terminate the IPO review of Guangzhou Bank.

The above announcement shows that the Shenzhen Stock Exchange lawfully accepted the IPO application of Guangzhou Bank on March 3, 2023, and lawfully and properly reviewed it. Recently, Guangzhou Bank submitted the "Application of Guangzhou Bank Co., Ltd. for the Withdrawal of the IPO Application File" to the Exchange, and the sponsor submitted the "Application of Guotai Junan Securities Co., Ltd. for the Withdrawal of the IPO Application File of Guangzhou Bank Co., Ltd." to the Exchange.

According to public information, Guangzhou Bank proposed its IPO plan as early as 2009 and set the goal of "listing within three years", but there was no substantive progress. Until June 2020, the bank submitted its IPO application to the China Securities Regulatory Commission. In March 2023, the A-share market deepened its reform and the registration system was fully implemented. Guangzhou Bank was transferred to the Shenzhen Stock Exchange and its IPO application was accepted by the Shenzhen Stock Exchange. It has been in the state of being accepted but not being questioned since then. With this withdrawal of the application, Guangzhou Bank's IPO journey that has been waiting for nearly 5 years has come to an end.

According to the prospectus issued by Guangzhou Bank in June 2024, the bank plans to issue no more than 3.925 billion shares, with an expected fundraising of about Rmb9.479 billion. After deducting the issuance expenses, the funds raised will be used to replenish the bank's core Tier 1 capital to improve its capital adequacy and enhance its comprehensive competitiveness. The prospectus shows that Guangzhou Bank's capital adequacy ratio was 13.26% in 2021, 14% in 2022, and 13.96% in 2023; its Tier 1 capital adequacy ratio was 10.16% in 2021, 10.09% in 2022, and 10.13% in 2023; and its core Tier 1 capital adequacy ratio was 9.16% in 2021, 9.13% in 2022, and 9.21% in 2023.

According to the latest disclosure by Guangzhou Bank, as of September 2023, its total assets reached Rmb832.083 billion. In the first three quarters, it achieved Rmb10.763 billion in revenue, down 12.55% YoY.