Banking News
- Construction Bank to debut Sept. 25
Date: 12-Sep-2007 Sources: (Xinhua Online)
CHINA Construction Bank Corp. (Construction Bank) said yesterday its shares will start trading on the Shanghai Stock Exchange Sept. 25 after completing a multibillion-dollar sale of shares that could be the country's largest domestic initial public offering (IPO) to date.
China's second-largest lender by assets said the subscription period for its IPO of up to 9 billion yuan-denominated A shares will be Friday and Monday next week.
The bank said the 9 billion new A shares will account for 3.85 percent of its enlarged share capital. According to the bank's prospectus, up to 3.15 billion shares, or 35 percent of the offering, will be sold to institutional investors, and up to 5.85 billion shares, or 65 percent of the offering, will be for retail investors.
Construction Bank hasn't yet priced the shares, but based on its Hong Kong stock price, that number of shares could be worth around 60 billion yuan (US$8 billion).
But the offering's value ultimately could be above that: A shares listed in Shanghai tend to trade at a higher price than the H shares of the same companies listed in Hong Kong. The bank's Hong Kong stock closed at HK$6.86 (88.17 U.S. cents) Monday.
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