Stocks News
- CITIC Bank narrows IPO range
Date: 13-Apr-2007 Sources: (Shenzhen Daily)
CHINA CITIC Bank Corp., the country's No. 7 commercial lender, lowered the fund-raising target and tightened the price range for its dual Hong Kong and Shanghai initial public offering (IPO), which could now raise up to US$5.4 billion, according to a term sheet.
Previously, the bank had been aiming to raise as much as US$5.7 billion in a deal that is still on track to be the world's biggest initial public offering so far this year.
One Hong Kong fund manager said Thursday the upper end of the lender's earlier proposed price range was too high.
'It's riskier than China Merchants Bank because of its high concentration of corporate loans,'the fund manager said.
The offer will close April 19, with a trading debut set for April 27.
CITIC Bank is now selling 4.885 billion Hong Kong shares at HK$5.06-HK$5.86 (US$0.65-US$0.75) apiece, compared with the earlier range of HK$4.72-HK$6.17, the term sheet said. It is selling 2.3 billion A shares to be listed in Shanghai at 5 yuan (US$0.65) to 5.80 yuan each, versus an earlier range of 4.66-6.10 yuan each.
The new range values the lender at 2.57-2.75 times its 2007 book value, compared with 2.48-2.81 times under its old range.
By comparison, Industrial and Commercial Bank of China, the country's largest lender, trades at 2.8 times 2007 book value in Hong Kong, while top non-State bank China Merchants trades at 4.33 times 2007 book value.
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