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.
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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)
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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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