China's AgBank sets record with $22bn IPO
AGRICULTURAL Bank of China boosted the size of its initial public offering (IPO) to $22.1bn (€17.2bn) after selling more stock in Shanghai, making it the world's largest first-time share sale. China's biggest lender by customers sold a further 3.34 billion shares at the IPO price of 2.68 yuan apiece.
That increased the Shanghai portion of the lender's IPO to 67.6bn yuan (€7.8bn). The expansion propels Agricultural Bank's IPO past Industrial and Commercial Bank of China's €17.1bn sale in 2006 to become the world's largest.
Agricultural Bank has declined 0.4pc since its July 15 debut in Shanghai, while in Hong Kong, where the stock started trading a day later, the shares have advanced 3.7pc.
Domestic investors in China ordered more than 10 times the stock available to them.
The Beijing-based lender is the last major Chinese bank to sell shares to the public, wrapping up a decade-long overhaul of the nation's banking industry that cost the government an estimated €510bn in bailouts and restructuring programs.
The IPO of the bank, once the weakest lender in China, makes the nation home to four of the world's 10 biggest banks by market value, half a decade after the country's first major state-owned lender went public. (Bloomberg)