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 (US$25 billion) 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 wrapped up its domestic road show 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 Oct. 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 US$21.9 billion.
Meanwhile, the ICBC road show 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 Oct. 23.
(Xinhua News Agency October 13, 2006)