ICBC prepares public offering
(Xinhua)
Updated: 2006-06-14 06:22 The Industrial and Commercial
Bank of China Ltd, the country's biggest lender by assets, is expected to list
shares in Hong Kong as early as September in one of the world's largest initial
public offerings.
ICBC's IPO is estimated at HK$100 billion (US$12.9 billion), dwarfing the
HK$75.4 billion debut by the Bank of China, the nation's No. 2 lender, in May,
the Shanghai Securities News reported yesterday.
ICBC President Yang Kaisheng was quoted as saying the bank has a "concrete
timetable" for its listing preparations.
China has encouraged its big-four state banks - ICBC, BOC, China Construction
Bank and the Agricultural Bank of China - to strengthen corporate governance and
streamline operations through stock market listings and other means. Meanwhile,
overseas investors have shown an eagerness to buy Chinese bank shares and tap
the country's sizzling economy.
The Bank of China shares were significantly oversubscribed and have soared
more than 20 percent since their June 1 trading debut, defying jitters over the
recent turmoil in Asian stock markets.
The Securities News said ICBC plans to submit its listing application next
week to the Hong Kong Stock Exchange, citing an unnamed senior manager at the
bank. China's banking regulator approved the bank's IPO plan in mid-March.
Insiders also believe ICBC will issue yuan-denominated shares through a
mainland market soon after its Hong Kong listing. The prevailing view among
Chinese brokerages is that the bank's A-share offering will come this year.
China's stock market surged in recent months, but sharp declines followed on
worries that a flood of IPOs and secondary share offerings by big state-owned
firms would depress interest in other stocks.
ICBC Chairman Jiang Jianqing has said he expects the bank to become one of
the world's top 10 lenders by market value and that 2006 profits will exceed 100
billion yuan (US$12.5 billion).
ICBC was transformed into a joint-stock company in October 2005. Months
later, a foreign trio of Goldman Sachs, American Express and Allianz Group paid
a combined US$3.78 billion for an 8.89 percent stake in the
bank.
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