The Industrial and Commercial Bank of China (ICBC), the
country's top lender, has attracted more than US$120 billion worth
of institutional subscriptions to its Hong Kong initial public
offering, a source familiar with the situation said.
The bank, planning to raise around US$20 billion through its
simultaneous Hong Kong and Shanghai listings, launched a global
roadshow on Monday that will continue until next Thursday.
By Thursday, institutional investors in Asian markets including
Hong Kong, Singapore and Dubai had placed more than US$120 billion
worth of orders, equivalent to 13 to 14 times the offering, the
source said.
The overflowing order book is expected to continue attracting
bids as the roadshow hits the United States and Europe.
ICBC is selling 35.4 billion H shares in Hong Kong, in a price
range of HK$2.56 (33 US cents) to HK$3.07 (39 US cents), which is
1.96 to 2.23 times the bank's 2006 book value.
It will sell 13 billion A shares in Shanghai at the same price
in yuan terms.
Depending on demand, the IPO may be increased to 40.7 billion H
shares and 14.95 billion A shares.
ICBC's domestic roadshow has received a warm reception,
according to media reports.
"It has received pledged subscriptions in excess of 200 billion
yuan (US$25 billion) from institutional investors, the equivalent
of five times the planned A-share issue," the Shanghai-based
Oriental Morning Post reported.
ICBC is expected to raise around 40 billion yuan (US$5 billion)
in Shanghai, nearly double the largest previous fund raising, by
Bank of China.
The first simultaneous listing in Shanghai and Hong Kong will
surpass a US$18.4 billion offer in 1998 by Japan's NTT Mobile
Communications, becoming the world's largest-ever IPO.
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(China Daily October 14, 2006)