HSBC share price: Bank leads contest to manage Saudi Arabia IPO

By: Anton Aleksandrov
Anton Aleksandrov
Anton is a freshly graduated economist from the States with passion for the world of finance. He is one… read more.
on Apr 9, 2014
Updated: Oct 21, 2019 Wednesday, April 9: HSBCI (LON:HSBA) and Gulf International Bank BSC are prime candidates to manage the largest Saudi Arabian initial public offering in at least 12 years, according to unnamed sources quoted by Bloomberg.

A decision on the mandate to lead the share offering of National Commercial Bank (NCB), the kingdom’s largest lender, is expected very soon. The Public Investment Fund of Saudi Arabia is selling 15 percent of its 69 percent interest in NCB, the bank’s chairman Mansoor Al Maiman announced on February 27. Riyad Capital analyst Asim Bukhtiar estimates that the offering could raise up to 16 billion riyals (₤2.55 billion).

“We are about to reach our recommendations very soon,” Al Maiman told Bloomberg yesterday in a telephone interview. “We will announce it as soon as today or tomorrow. We cannot disclose any information right now, but as soon as we get the CMA approval by today or tomorrow we will put the news out.”
**HSBC appoints Candy Ho as global head of RMB business development**

HSBC has appointed Candy Ho as global head of RMB business development. She was previously head of the Asia-Pacific RMB business development.
In her new role, Ho will be responsible for devising the bank’s global renminbi strategy for markets. She will report directly to Justin Chan, co-head of markets, Asia-Pacific. Chan was quoted in the media as saying: “Renminbi internationalization is a key growth priority for global banking and markets. Asia-Pacific has been the first region to capture the new opportunities arising from the wider use of renminbi in trade and investment, but, as China continues to internationalize its currency, the demand for renminbi products in other parts of the world has also been growing.”

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**Analysts on HSBC**
JPMorgan Chase reaffirmed its neutral rating on HSBC’s shares in a note sent to investors today. It lowered its price target on the stock to 700.00p from 730.00p, indicating a potential upside of 14.8 percent from today’s opening price of 609.90p. As a result of lower revenue in Global Banking & Markets and Emerging Markets, reflecting industry trends, as well as possible accounting volatility ahead from the group’s associated stake in Bank of Communications, JPMorgan analysts lowered their 2015 underlying earnings per share (EPS) estimate by six percent and the reported EPS by 13 percent. Moreover, because of “uncertain UK/US capital regime and weaker underlying profitability”, the analysts lowered their 2014/2015 dividend growth forecast to two percent from six to eight percent.
Five equity analysts rate HSBC as a ‘sell’, 17 give it a ‘hold’ rating and 14 are calling it a ‘buy’. The shares have a consensus rating of ‘hold’ and an average price target of 720.02p.
**As of 11.55 BST buy HSBC shares at 612.41p.**
**As of 11.55 BST sell HSBC shares at 612.39p.**

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