It is the largest stock market listing since Chinese online retailer Alibaba raised $25bn in New York in 2014.
PSBC is China’s fifth largest lender, but the biggest by number of branches.
The majority of shares in the state-owned bank will be bought by so-called cornerstone investors, suggesting weak demand from traders.
Cornerstone investors subscribe ahead of the stock market listing to buy a certain number of shares and in return agree to hold them for a minimum period of time.
While initially used to draw in big investors, cornerstones are now largely seen as a way of limiting the risk that the listing might fail.
In the case of PSBC, a group of six cornerstone investors will buy about 72% of the shares on offer.
Market volatility
The share listing comes as the region sees a hefty drop in share sales, with the first half of 2016 the weakest period since 2008.
Stock listings in Asia Pacific have been affected by recent market volatility, which has affected trust in shares as investment.
Analysts say the share sale will help PSBC raise funds at a time when China’s economy is slowing and bad loans are rising.
China’s slowing growth, as well as global uncertainty over the US election and the UK leaving the European Union, has also contributed to an uncertain climate for investors.