Everbright Bank eyes 18.9b yuan from IPO
By Zhang Fengming |
August 10, 2010, Tuesday
|
Print Edition
Print Edition
CHINA Everbright Bank Co can raise up to 18.9 billion yuan (US$2.8 billion) in the second-largest initial public offering in China this year.
The bank will sell as many as 6.1 billion shares in Shanghai before exercising an over-allotment option at 2.85 yuan to 3.10 yuan apiece, the Beijing-based bank said in a statement to the Shanghai Stock Exchange yesterday.
Everbright Bank, China's 11th-biggest lender by assets, will allocate as many as 3 billion shares, or 49.2 percent of the offering, to strategic investors. Another 25.4 percent is offered to retail investors, with the remaining for corporate investors.
Retail investors can begin subscribing to the shares today. The bank will post its issue price on Thursday. In most cases, companies set their issue price at the top of the offering price range.
The bank is selling 15.4 percent of its enlarged capital in the offering before over-allotment.
The IPO could be the second-largest in China this year, following the 59.6 billion yuan IPO of the Agricultural Bank of China, the biggest bank in China in terms of network, in July.
The IPO comes against a low investor sentiment and a flood of capital-raising plans by banks.
The benchmark Shanghai Composite Index has lost 22 percent this year as the worst performing market among the world's 10 major markets.
"Everbright Bank's IPO, with the final scale of 6.1 billion shares, isn't likely to hit the broad market hard on account of its relatively smaller scale and full liquidity," said Wang Pin, a fund manager at HSBC Jintrust Fund Management Co Ltd.
The bank is among a fleet of Chinese banks to raise capital following a record 9.6 trillion yuan in new loans last year.
The bank will sell as many as 6.1 billion shares in Shanghai before exercising an over-allotment option at 2.85 yuan to 3.10 yuan apiece, the Beijing-based bank said in a statement to the Shanghai Stock Exchange yesterday.
Everbright Bank, China's 11th-biggest lender by assets, will allocate as many as 3 billion shares, or 49.2 percent of the offering, to strategic investors. Another 25.4 percent is offered to retail investors, with the remaining for corporate investors.
Retail investors can begin subscribing to the shares today. The bank will post its issue price on Thursday. In most cases, companies set their issue price at the top of the offering price range.
The bank is selling 15.4 percent of its enlarged capital in the offering before over-allotment.
The IPO could be the second-largest in China this year, following the 59.6 billion yuan IPO of the Agricultural Bank of China, the biggest bank in China in terms of network, in July.
The IPO comes against a low investor sentiment and a flood of capital-raising plans by banks.
The benchmark Shanghai Composite Index has lost 22 percent this year as the worst performing market among the world's 10 major markets.
"Everbright Bank's IPO, with the final scale of 6.1 billion shares, isn't likely to hit the broad market hard on account of its relatively smaller scale and full liquidity," said Wang Pin, a fund manager at HSBC Jintrust Fund Management Co Ltd.
The bank is among a fleet of Chinese banks to raise capital following a record 9.6 trillion yuan in new loans last year.
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