More than 800 Chinese companies are seeking approvals to list on the Shanghai or Shenzhen exchanges, aiming to raise an estimated 500 billion yuan ($80.25 billion) in total, Ernst & Young said last month. Some companies may need to wait up to five years to launch a domestic IPO, which would prompt some to turn to Hong Kong, the accountancy firm said.
Officials at Galaxy Securities were not immediately available for comment.
Beijing-based Galaxy Securities, founded in 2007, is controlled by central Huijin, a unit of China's sovereign wealth fund.
China Galaxy International, Goldman Sachs and JPMorgan Chase will underwrite the Hong Kong portion of the IPO, while Guotai Junan Securities will handle the mainland listing, IFR said.
Proceeds from the IPO will be used to replenish the company's capital, and the amount of money to be raised in each market will depend on market conditions, a source told Reuters in October.
Chinese securities firms are suffering from a sluggish market that has put many investors on the sidelines, hurting trading commission incomes — their main source of revenue.
Many brokerages are eager to raise funds from the capital market to strengthen their balance sheets and invest in new businesses. Guotai Junan Securities is also preparing for an IPO.