AGRICULTURAL BANK of China (ABC) met enthusiastic response from about 150 fund managers, buy side analysts and institutional brokers who turned up for its pre-IPO investor meeting in Singapore today.
Its executive vice president Mr Pan Gongsheng said he is confident the IPO will be a huge success during a doorstop interview with Singapore media after the presentation at the Fullerton Hotel this afternoon.
The last of China’s “Big Four” banks to go public, ABC is China’s main rural lender.
He was optimistic despite the muted market sentiment arising from the recent slide in stock prices of the other 'Big Banks", namely Industrial & Commercial Bank of China, Construction Bank and Bank of China.
Its domestic rivals are also competing for investors’ cash.
Bank of China, the nation’s third largest by market value, said on 2 Jul it plans to raise as much as Rmb 60 billion in a rights offer to replenish capital.
Also, Construction Bank won shareholder approval last month to raise Rmb 75 billion in a rights offer.
Mr Pan pointed to a number of sovereign funds and other heavy weight anchor investors already in the picture, and highlighted its forecast of earnings growth of 30% or more this year.
Temasek Holdings will invest about US$200 million and UOB will invest US$100 million.
Other international investors include the Qatar Investment Authority (US$2.8 billion), Kuwait Investment Authority (US$800 million), UK’s Standard Chartered Bank (US$500 million), Dutch bank Radobank Nederland (US$250 million), Australia's Seven Group Holdings (US$250 million).
Hong Kong property giant Cheung Kong and Archer-Daniels Midland have each committed US$100 million.
It has gone ahead with its IPO after almost 50 companies worldwide shelved IPOs in the past 3 months amid concern that the end of government stimulus and widening budget gaps from Greece to Spain will curb the global economic recovery.
Its IPO issue price will be announced on July 7 and it will list in Shanghai on the 15th and in Hong Kong on the 16th.
It is offering 25.4 billion H shares in Hong Kong at between HK$2.88 and HK$3.48 apiece, and 22.2 billion A shares in Shanghai at Rmb 2.52 to Rmb 2.68 yuan each.
The bank aims to sell up to 54.8 billion new shares (14% stake) for US$23bn.
China International Capital Corp, Deutsche Bank, Goldman Sachs, JP Morgan, Macquarie and Morgan Stanley are joint sponsors for the international tranche of ABC’s IPO.
