Banking News
- Construction Bank may set IPO record
Date: 6-Sep-2007 Sources: (Shenzhen Daily)
CHINA Construction Bank (Construction Bank), China's second-largest lender, may list on the Shanghai Stock Exchange as early as this month, potentially raising up to US$7.4 billion in what would rank as the country's largest domestic sale to date.
The listing committee of China Securities Regulatory Commission will hold a meeting Friday to review listing plans by China Construction Bank. In a regulatory filing Tuesday, the Beijing-based bank said it plans to sell as many as 9 billion shares. The document did not put a value on the shares.
If successful, the bank would become the fourth of the mainland's five largest banks to sell shares on the Shanghai exchange. The bank has US$810 billion in assets and ranks behind only Industrial & Commercial Bank of China in size.
Hong Kong-listed Construction Bank has set a range for its share sale at 5.8 yuan (77 U.S. cents) to 6.2 yuan, raising up to 55.8 billion yuan, according to a report by the Oriental Daily yesterday, which cited unnamed sources familiar with the matter. The report by the Hong Kong-based newspaper said the bank in planning its Shanghai listing Sept. 26.
Other analysts said Construction Bank's offering could be valued above 60 billion yuan if the shares are priced above equivalent H shares.
Pricing the Shanghai listing at a premium to those in Hong Kong would not be out of line with market conditions. Of the 44 shares listed on both the mainland and Hong Kong, the Shanghai shares trade at 46 percent premium to their Hong Kong counterparts.
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