Stocks News
- CCB awaits approval on its A-share listing
Date: 6-Sep-2007 Sources: (Xinhua Online)
BEIJING, Sept. 5 -- China Construction Bank Corp will sell shares to rake in billions of U.S. dollars as early as next month in what will be the second-biggest stock float on the Chinese mainland.
The listing committee of China's securities regulator will meet on Friday to review the Beijing-based bank's plan to sell as many as nine billion yuan-backed A shares, the watchdog said.
The new shares account for just 3.85 percent of the lender's stake.
Shanghai-listed China Yangtze Power Co, which holds a 1.03-percent stake in Construction Bank, rose 2.64 percent to 20.58 yuan (2.73 U.S. dollars) yesterday, outperforming the broader market, which dipped 0.51 percent.
The lender didn't disclose how much it plans to raise. The capital may be worth 59.85 billion HK dollars (7.67 billion U.S. dollars) based on the lender's closing price of 6.65 HK dollars yesterday in Hong Kong. The A-share price may be discounted on its H-share price.
Industrial and Commercial Bank of China became the world's biggest initial public offering by raising 19.1 billion U.S. dollars in October in a dual listing in Hong Kong and Shanghai. The IPO raked in 46.6 billion yuan in Shanghai.
Big companies like Construction Bank normally gain approval on the scheduled regulatory review day and could be listed within a month, said Qiu Zhicheng, a Haitong Securities Co analyst.
The H shares of Construction Bank have gained about 40 percent since it first announced a mainland stock offering on June 15.
The lender is the last among the five Hong Kong-listed Chinese banks to return to the A-share market on the Chinese mainland.
Authorities are encouraging big qualified banks to return to the mainland stock market to expand supply in a market that some analysts say is overvalued due to excess liquidity.
The benchmark Shanghai Composite Index has gained 94 percent so far this year after soaring 130 percent in 2006.
The money raised will be used to boost the lender's capital, Construction Bank said in a pre-prospectus.
Its capital adequacy ratio, the main gauge of financial strength with capital against risk-weighted assets, was 11.34 percent by June 30. The minimum regulatory requirement is eight percent.
CITIC Securities Co, China International Capital Corp, part-owned by Morgan Stanley, and China Cinda Asset Management Corp are the underwriters.
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