Business News
Agricultural Bank of China floats record 22.1-billion-dollar IPO
Jul 9, 2010, 2:42 GMT
Beijing - The Agricultural Bank of China on Friday confirmed the price of its new shares to be traded in Hong Kong as part of a dual listing that gives the bank the world's highest initial public offering.
In a statement to the Hong Kong Stock Exchange, the Beijing-based bank said its 25.4 billion shares to be listed in Hong Kong are priced at 3.20 Hong Kong dollars each (41 US cents).
The dual listing in Hong Kong and Shanghai will net the bank 22.1 billion dollars, overtaking the world record 21.9 billion dollars raised by the Industrial and Commercial Bank of China in October 2006.
On Thursday, the bank said it had priced 25.57 billion Shanghai-listed shares at 2.68 yuan each (40 US cents), the top of its indicated price range. It said it also allocated an additional 15 per cent of Shanghai stocks for a 'greenshoe' option in case of oversubscription.
A greenshoe option consists of extra shares made available to meet high demand for a new issue to stabilize the stock price in the first days of trading.
The Agricultural Bank of China, the third-largest lender of China's 'big four' banks, plans to start trading its new shares on July 15 in Shanghai and July 16 in Hong Kong.
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