State-owned Postal Savings Bank of China Co. successfully raised $7.4 billion on Wednesday in Hong Kong, the biggest initial public offering (IPO) in the world in two years.

The lender valued its shares in its Hong Kong IPO at 61 US cents each, sources with knowledge about the matter told The Wall Street Journal. Despite being in the lower end of the Postal Savings Bank of China's share range, it still made the biggest IPO since Alibaba's $25 billion extravaganza in September 2014.

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However, more than 75 percent of the stocks were preordered by six big state-owned cornerstone investors including a port operator, power company and shipbuilder who agreed to buy shares even before the price was set and committed not to sell them within the next six months, Fortune reported.

According to CNN Money, Postal Savings Bank of China declined to comment about the sale until next week as per regulations. The price valued the bank at nearly $49 billion.

The state-owned establishment caters to more than half a billion people in the country having more branches compared to other Chinese banks. It has an impressive reach of more than 40,000 outlets.

As China faces economic slowdown, reporting a 6.7 percent growth in the second quarter, the slowest rate of quarterly growth in seven years, Postal Savings Bank of China also reported slower profit growth. The bank posted a net profit growth of 10 percent in 2014 and only seven percent last year.

Shares of Postal Savings Bank of China should start trading on Sept. 28 in Hong Kong.

TagsPostal Savings Bank, China Bank, Hong Kong Stock Exchange, IPO, Postal Savings Bank of China