CHINA / National

BOC plans Hong Kong IPO
Updated: 2006-03-24 22:03

Bank of China, the second-largest lender in China, is aiming to list shares in Hong Kong on June 1, a person familiar with the deal said Friday.

The bank, which could raise up to $6 billion in a Hong Kong initial public offering, will kick off the road show for the deal in mid-May.

The exact size of the IPO will be determined after the bank decides whether to push through with a domestic A-share listing following the Hong Kong IPO, said the source, who asked not to be named because he wasn't authorized to speak to the media about the deal.

Bank of China will be the second of the country's "Big Four" banks to list shares overseas. In October, China Construction Bank Corp became the first with a $9.2 billion Hong Kong IPO.

The Bank of China declined to comment.

The deal is expected to draw heavy investor interest. Analysts say Chinese banks, are expected to grow dramatically as the Chinese economy expands.

Since listing, China Construction Bank's shares have risen 50 percent. Since January, Hong Kong's H-share index, made up of Chinese-registered companies listed in Hong Kong, has risen more than 20 percent to 6562.

However, Bank of China will have to compete with other Chinese lenders expected to list in Hong Kong this year. They include state-owned giant Industrial & Commercial Bank of China, as well as mid-tier lenders China Minsheng Banking Corp. and China Merchants Bank.

UBS AG and Goldman Sachs Group are underwriters of the deal.