Bank of China's $9.8b IPO set to surpass CCB
(Reuters)
Updated: 2006-05-09 10:50 HONG KONG - Bank of China, the country's second
largest lender, can surpass China Construction Bank to go public in China's
largest initial public offering, sources familiar with the situation told
Reuters on Tuesday.
A man rests in front
of a branch of Bank of China in China's financial center Shanghai April
18, 2006. Bank of China, the country's second-largest bank, is reported to
offer 25.5 billion shares, or 10.5 percent of its enlarged share capital.
[Reuters] |
The state-owned bank, which plans to offer 25.5
billion shares, or 10.5 percent of its enlarged share capital, will sell its
shares at about HK$3.00 a share, sources said.
The deal, worth as much as US$9.8 billion before a 15 percent over-allotment
option, is set to surpass China Construction Bank's US$9.2 billion IPO last
year, to be the nation's biggest ever.
The bank has already attracted commitments for a combined US$1.92 billion
worth of shares from 12 so-called cornerstone investors, including China Life
Insurance and Ping An Insurance , which would together take about 20 percent of
the IPO.
The offering, arranged by BOC International, Goldman Sachs and UBS , is
expected to draw strong investor interest.
At the top of a proposed price range, BOC is valued at 2.2 times prospective
book value, at a discount to Chinese banks average of 2.3 times 2006 book value,
according to Goldman Sachs.
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