(Yicai Global) Sept. 2 -- China International Capital, China's oldest securities joint venture, is planning to issue shares on the Shanghai Stock Exchange while releasing generous predictions of its performance this year.

The financial institution would issue no more than 459 million shares to strengthen its positioning in strategic areas such as financial technology and internationalization, the Beijing-based company said in its prospectus published yesterday.

CICC expects its net profit to increase by as much as 47 percent to a point between CNY3.6 billion and CNY4.6 billion (up to USD673.3 million) in the first three quarters of this year from a year ago, the listing application shows. Its revenue could rise as much as 45 percent to a figure between CNY12.9 billion and CNY16.2 billion (up to USD2.4 billion).

That is much even for the behemoth. Last year, CICC's net profit increased by 21 percent to CNY4.2 billion from 2018. Its revenue climbed 23 percent to CNY22.8 billion.

CICC was formed by China Construction Bank and Morgan Stanley in 1995. Its business involves investment banking, equities, fixed income, and wealth management business.

The financial giant surpasses its peers in the sector with its innovation capacity and is expected to achieve sustained growth with its excellent risk control, Huachuang Securities wrote in a report.

CICC has been offering its underwriting services to one-fifth of the firms that have gone public on the mainland in the past two years, as well as to the biggest number of Star Market IPO-hopefuls, according to Ma Kunpeng, analyst at Shenwan Hongyuan Securities.

The controlling shareholder of CICC is Central Huijin Investment whose stake should fall to 40.1 percent from 44.3 percent after the issuance. The second-largest shareholder is Haier Group Qingdao Financial Holdings with a 9.1 percent stake. Currently, two internet giants Tencent Holdings and Alibaba Group Holding both indirectly hold nearly 5 percent of the equity.

CICC's stock price [HKG: 3908] rose 1.6 percent to CNY18.56 (USD2.70) this afternoon.

Editor: Emmi Laine