Bank of China Limited (BOC), one of China's four biggest State-owned
commercial banks, started its Hong Kong public offering Thursday, and Hong Kong
citizens lined in queues in a number banks in Hong Kong for getting application
forms in the morning.
Some 3 million copies of the applications forms are prepared for local banks
and securities companies.
At a bank in Kowloon, hundreds of people lined in queues before the bank's
opening hour for fetching an application form.
In Central District's banking area, dozens of people lined up in each of the
banks there for taking application forms.
Various banks also offered loans at preferential interest rates for citizens
to apply new shares and banks are waving a "war" to attract customers.
The successful listing of a number of Chinese mainland companies in the past
few months has already "fostered" many fans of the newly listing Chinese
mainland companies, as winning the lots of new shares.
The bank will offer a total of 25.57 billion H shares in its global offering,
including initially 1.28 billion H shares for the Hong Kong public offering and
24.29 billion H shares for the international offering.
The offer price will not be higher than 3.00 HK dollars (0.38 US dollars) per
share and is expected not to be lower than 2.50 HK dollars (0.32 US dollars).
The final price will be determined on May 24, 2006.
Trading of the bank's H share is scheduled to commence on June 1 on the main
board of the Hong Kong Exchange and Clearing Limited. The lot size is 1,000
shares.
BOC Chairman Xiao Gang said at a televised press conference on Wednesday that
"We are a leader in non-interest income and foreign exchange business with
strong product innovation capabilities. The overall listing of the bank in Hong
Kong is to open another exciting chapter of the bank's hundred-year history."
Xiao said the net proceeds of the bank's global offering will be
approximately 68.07 billion HK dollars (8.73 billion US dollars) after deducting
the underwriting fees and estimated expenses payable by the bank.
He said the bank intends to use the proceeds to strengthen its capital to
support its future business growth.
He said that the Chinese mainland and Hong Kong markets are the foundations
of the bank's development. "With the support of all our customers, I am certain
that Bank of China will further develop and expand and create value for all our
customers and shareholders."
(For more biz stories, please visit Industry Updates)
