ABC gains nod for dual listing
By Zhang Fengming |
June 10, 2010, Thursday
|
Print Edition
Print Edition
THE Agricultural Bank of China Ltd yesterday gained regulatory approval for its dual listing, which could be the world's largest-ever initial public offering, and the go-ahead signals the completion of the Chinese government's decade-long overhaul of the banking industry.
The China Securities Regulatory Commission said yesterday on its Website that it gave the green light for the biggest bank in China by customers to launch its IPO.
ABC said in a prospectus last week that it plans to sell as many as 22.24 billion yuan-backed A shares in its IPO in Shanghai and another 25.4 billion shares in Hong Kong. Its Shanghai shares would account for 7 percent of its enlarged capital, while its Hong Kong shares would account for 8 percent.
The Hong Kong stock exchange is expected to review ABC's Hong Kong listing today. The bank is expected be listed in the middle of July.
It's not known what the Beijing-based bank's issue price will be, but earlier media reports indicated that it could net as much as US$30 billion to rank as the biggest IPO in the world, surpassing the US$22 billion sale by the Industrial and Commercial Bank of China in 2006.
But there has been market speculation that ABC may trim its IPO due to weak investor sentiment.
ABC Chairman Xiang Junbo has had to persuade investors of ABC's prospects on concerns of a double-dip recession in the global economy amid the Greece debt crisis as well as worries of a domestic stock market slide and a correction in the housing market.
China Construction Bank, ICBC, the Bank of China and the Bank of Communications are rushing to raise funds in the stock market to replenish capital after lending a record 9.6 trillion yuan (US$1.4 trillion) in 2009.
The China Securities Regulatory Commission said yesterday on its Website that it gave the green light for the biggest bank in China by customers to launch its IPO.
ABC said in a prospectus last week that it plans to sell as many as 22.24 billion yuan-backed A shares in its IPO in Shanghai and another 25.4 billion shares in Hong Kong. Its Shanghai shares would account for 7 percent of its enlarged capital, while its Hong Kong shares would account for 8 percent.
The Hong Kong stock exchange is expected to review ABC's Hong Kong listing today. The bank is expected be listed in the middle of July.
It's not known what the Beijing-based bank's issue price will be, but earlier media reports indicated that it could net as much as US$30 billion to rank as the biggest IPO in the world, surpassing the US$22 billion sale by the Industrial and Commercial Bank of China in 2006.
But there has been market speculation that ABC may trim its IPO due to weak investor sentiment.
ABC Chairman Xiang Junbo has had to persuade investors of ABC's prospects on concerns of a double-dip recession in the global economy amid the Greece debt crisis as well as worries of a domestic stock market slide and a correction in the housing market.
China Construction Bank, ICBC, the Bank of China and the Bank of Communications are rushing to raise funds in the stock market to replenish capital after lending a record 9.6 trillion yuan (US$1.4 trillion) in 2009.
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