ICBC opts for simultaneous listing
By Yu Lu (China Daily)
Updated: 2006-07-14 09:11 Previous reports said the ICBC would submit a listing application to the Hong
Kong stock exchange in July for listing in October.
However, the
Shanghai Securities News said whether the bank could get listed according to
this timetable depended on government approval.
It said the China
Securities Regulatory Commission had not approved its listing proposal. And the
listing size and the financing proportion in Hong Kong and Shanghai had yet to
be decided.
With Bank of China easily raising 20 billion yuan (US$2.5
billion) in the mainland's biggest IPO only a month after its Hong Kong listing,
bankers believe the time is ripe for simultaneous listings, or even listing on
the domestic market first.
The mainland is looking to boost the domestic
market with high quality listings after the biggest mainland companies sold
their shares overseas, mostly in Hong Kong.
"The stock performance of the
big companies, like Bank of China, has heavy impacts on the overall stock
market," said Dong Chen.
Completing a single price and simultaneous
listing, however, is seen as complicated, as the Hong Kong and Shanghai markets
differ in terms of mechanisms and environment.
Such a deal also requires
two sets of investment banks, adding to the risk.
Sources said the bank
has selected four local underwriters for its A-share listing, including China
International Capital Co (CICC), CITIC Securities Co, Shenyin & Wanguo
Securities Co and Guotai Jun'an Securities Co.
It appointed Credit
Suisse, Deutsche Bank, Merrill Lynch, ICEA and a consortium led by CICC to
underwrite its Hong Kong share sale at the beginning of this
year.
(For more biz stories, please visit Industry Updates)
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