Stocks News
- CCB to launch largest IPO on China's A-share market
Date: 12-Sep-2007 Sources: (Xinhua Online)
BEIJING, Sept. 11 (Xinhua)-- The China Construction Bank (CCB), the second largest state-owned commercial bank in China, on Tuesday began a roadshow in four main cities for its nine billion A-share Initial Public Offering (IPO) on the Shanghai Stock Exchange.
The roadshow will be staged from September 11 to 13 in Shanghai, Shenzhen, Guangzhou and Beijing.
The share price is yet to be decided. Some investment banks, including USB and Merrill Lynch, predicted the share price would range from 7.07 yuan to 7.21 yuan.
Based on the prediction, the total fund to be raised would possibly surpass 63 billion yuan, much higher than the 46.6 billion yuan raised by the Industrial and Commercial Bank of China through its then record A-share IPO in 2006.
Fund raised from the IPO, which will be the biggest on the Chinese A-share market, will be used to boost its capital adequacy, according to the CCB.
According to the bank's prospectus, carried in Shanghai Securities News, 35 percent of the shares will be sold to institutional investors from September 14 to 17 and the remaining 65 percent to retail investors on September 17.
China International Capital Corporation, CITIC Securities and China Cinda Asset Management Company are underwriters for this issue.
The China Securities Regulatory Commission, the industry watchdog, approved CCB's A-share listing scheme on September 7.
At the end of June, 2007, CCB boasted 3.17 trillion yuan in gross assets. It garnered 34.3 billion yuan in net profits in the first half of this year, up 47.5 percent on the same period of last year. (One U.S. dollar equals to 7.53 yuan)
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