BEIJING -- The initial public offering (IPO) of China's largest lender, the
Industrial and Commercial Bank of China (ICBC), has been warmly received by
domestic investors, media reports said Thursday.
"ICBC underwriters have already received pledged subscriptions exceeding 200
billion yuan (25 billion U.S. dollars) from institutional investors, equivalent
to five times the planned A-share issue size," the Shanghai-based Oriental
Morning Post reported.
"Though many institutional investors are looking for discounts, the final
price is very likely to be near the top of the 2.6 to 3.12 yuan bracket," Qiu
Zhicheng, an analyst with the Shanghai-based Haitong Securities Co., said.
The ICBC wound up its domestic roadshow at its Beijing headquarters
Wednesday, after a tour headed by deputy president Li Xiaopeng that took in
Shanghai and Shenzhen.
The Shanghai Securities News reported that most of the investors contacted by
its reporters said the price bracket was acceptable.
The ICBC plans to issue 14 billion yuan-denominated A shares to be listed in
Shanghai and 35.4 billion Hong Kong dollar-denominated H shares to be listed in
Hong Kong, both on October 27.
Depending on demand, the IPO might be increased to 40.7 billion H shares and
14.95 billion A shares.
The ICBC is expected to raise an all-time record 21.9 billion U.S. dollars.
Meanwhile, the ICBC roadshow in Hong Kong, Singapore, Europe and the United
States has also received warm reactions, China Business News said.
On Wednesday, the H shares had been oversubscribed by nearly 10 times by
global investors, the report said.
The final price is expected to be set on October 23.
