Banking News
- Bank of Beijing sets IPO price target
Date: 7-Sep-2007 Sources: (Shenzhen Daily)
BANK of Beijing Co., China's largest city commercial lender by assets, has set a higher-than-expected price target of 14-16 yuan a share for its keenly-awaited yuan-denominated A-share listing.
The lender, which is expected to make its debut on the Shanghai Stock Exchange around Sept. 19, also said late Wednesday it has scrapped a plan to seek a dual-listing in Hong Kong due to regulatory hurdles.
Based on the indicative pricing, the bank is seeking to raise up to 19.2 billion yuan (US$2.54 billion) from the initial public offering (IPO). The Beijing lender, which is 19.9 percent-owned by ING Groep NV, is selling up to 1.2 billion A shares, or 19.27 percent of its enlarged share capital.
In a statement, Bank of Beijing said the indicative IPO price range represents a certain discount to other bank stocks in the A-share market and is expected to receive strong demand.
However, several fund managers attending Bank of Beijing's IPO roadshow in Shanghai on Wednesday said the price target is above the 12-13 yuan range that the market had expected. The lender has held a three-day nationwide roadshow since Monday, gauging investor appetite in Beijing, Shanghai, Shenzhen and Guangzhou.
Bank of Beijing, which is set to become China's third domestically-listed city lender after Bank of Nanjing and Bank of Ningbo, is also the latest firm to put aside plans for a Hong Kong IPO.
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