China's 3rd-biggest broker to raise $2.1 bln in HK share sale-IFR

HONG KONG, March 26 (Reuters) - Guotai Junan Securities

, China's third-largest brokerage by assets, is set

to raise $2.1 billion in a rare fixed-price share offering in

Hong Kong, IFR reported on Sunday, citing people familiar with

the plans.

The Shanghai-listed company plans to sell 1.04 billion

shares at a fixed price of HK$15.84 each, putting the total deal

at HK$16.5 billion ($2.12 billion), IFR, a Thomson Reuters

publication, reported. That would make it the largest stock sale

in the city since the $7.63 billion initial public offering of

Postal Savings Bank of China (PSBC) in September 2016.

Guotai Junan did not immediately reply to a Reuters request

for comment after business hours on Sunday.

The deal will be launched on Monday, with pricing slated for

Friday, IFR said.

The price represents a discount of about 25 percent to

Guotai Junan's closing price of 18.79 yuan in Shanghai on

Friday. A fixed-price share offering is unusual, with most deals

setting an indicative range before deciding on the final

pricing, depending on demand.

Guotai Junan secured about $600 million in commitments from

cornerstone investors for the deal, IFR reported. The company

ranks behind CITIC Securities and Haitong Securities in terms of

assets, revenue and profits, according to the offering


Guotai Junan hired Bank of America Merrill Lynch, Goldman

Sachs, Shanghai Pudong Development Bank International and Guotai

Junan's Hong Kong investment-banking arm - Guotai Junan

International - as joint sponsors for the deal.

($1 = 7.7665 Hong Kong dollars)

(Reporting by Fiona Lau of IFR; Writing by Elzio Barreto;

editing by Susan Thomas)