BEIJING, June 1 -- Industrial & Commercial Bank of China is revamping its corporate structure to improve its risk management before it floats shares in Hong Kong later this year.

    The largest commercial lender on the Chinese mainland is expected to launch a US$12 billion initial public offering.

    ICBC will add 10 new departments, including risk management, credit approval, asset and liability management, and cut seven other divisions, the lender said in a statement yesterday. It will also improve services.

    "The restructuring is aimed at improving risk control, enhancing corporate governance and operating efficiency," ICBC said.

    The changes will first start at its headquarters in June before extending to branches across the mainland. "The restructuring is a step forward as ICBC prepares itself for the listing this year," said Zhang Qi, an analyst at Haitong Securities.

    State-owned ICBC is expected to raise US$10 billion to US$12 billion in the IPO in Hong Kong as early as September. The sale will make ICBC the third of the big four mainland lenders to be listed as China prepares for foreign competition in the banking sector slated to be fully opened by the end of this year.

    Bank of China and China Construction Bank are the other two big four lenders that are already listed.

    BOC last Wednesday offered the world's biggest IPO in six years, raising US$9.7 billion pricing its Hong Kong IPO shares at HK$2.95 each.

    If green shoe options are exercised and the bank decides to raise its share offering by 15 percent, the IPO proceeds will rise to US$11.2 billion. The shares will start trading in Hong Kong today.

    (Source: Shanghai Daily)