The US$9.8-billion initial public offering (IPO) by Bank of China, the world's largest offering in six years, caused a huge stir in Hong Kong yesterday as applicants swarmed distribution centres for share application forms.

A queue of more than 100 metres formed outside one centre in Causeway Bay, the most populous area on Hong Kong Island.

"It's so crowded. We're only giving out two forms for each person - anyone who wants more has to queue up again," said a centre worker.

"I will have to queue up three times as I need six forms for my family and friends," said a 60-year-old man surnamed Ku, who was very optimistic about the mainland's second-largest bank.

His family plans to invest HK$300,000 (US$38,461) in BOC shares.

"I have already invested in both the Bank of Communications and China Construction Bank and have seen rewards, especially from the Bank of Communications," Ku told China Daily.

Retail investors queue to take prospectuses for the initial public offering (IPO) of Bank of China in Hong Kong yesterday. The bank, which is preparing a US$9.8 billion IPO, said on Wednesday it expects its tax rate to fall to below 35 per cent after its listing on June 1, down from 40 per cent in 2005. (REUTERS)

But another man waiting in the queue was 37-year-old Jason Ng, who did not share Ku's opinion.

"Shares in China Construction Bank have been rising too slowly. I eventually lost patience and sold the 30 lots of shares I brought at HK$3.15 each. I will invest the money in the Bank of Communications and Bank of China."

Ng said he hoped Bank of China shares would rise sharply after they start trading on June 1. "I simply want quick returns," he said.

Unlike Ng, 40-year-old Paul Yeung believes the game of share trading is a matter of long-term investment.

Yeung said he was prepared to purchase 10 lots that will cost him more than HK$30,000 (US$3,846).

"It is the second-largest bank on the mainland. The potential is very great. I believe that the stock market should be for long-term investment."

Although many companies have also launched their IPOs in Hong Kong over the past months, Yeung has decided to wait for Bank of China because "it will deliver long-term returns."

Yeung joined another 300 people waiting at a HSBC branch in Mong Kok, Kowloon's commercial district, for application forms.

Hongkongers are well accustomed to queuing, however yesterday was a long day for those waiting.

Forty-two-year-old Ann Tsang said: "I prepared myself for a harsh day queuing.
"I arrived at the HSBC branch in Mong Kok as early as 7 am, but there were already many people waiting for subscription forms."

Tsang, who missed the share sale by China Construction Bank last year, said she was trying to make up for that mistake with Bank of China.

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