Fujian-based Industrial Bank Co. Ltd. planned to raise about US$850 million in an initial public offering in Hong Kong or Shanghai, banking sources said Monday.

The bank is scheduled to convene an interim general meeting of shareholders Nov. 19 to vote on an IPO scheme of the bank.

"It has always been the bank's target to go public. But China's listing rules require a 12-month cooling period if there has been a shareholding change," one source familiar with the situation said.

Hong Kong's Hang Seng Bank paid US$208 million for a 15.98 percent stake in Industrial Bank in late 2003.

Hang Seng is the largest overseas investor in the bank, followed by Singapore's government investment vehicle GIC Special Investments with 5 percent and World Bank private sector arm International Finance Corp. with 4 percent.

Industrial Bank has assets of 260 billion yuan (US$31.4 billion) at the end of 2003, up 36.1 percent from 2002.

In the first three quarters of this year, its non-performing loan ratio dropped 0.1 percentage point to 2.39 percent from the end of 2003, while its profit jumped 48.2 percent to 2.22 billion yuan.

The bank has chosen Bank of China International as the adviser on its IPO plan, but is yet to select IPO underwriters.

(Shenzhen Daily-Agencies)