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| China's CCB wins IPO nod from HK bourse [file
photo] | China Construction Bank won approval to make an
initial public offering in Hong Kong worth at least $5 billion, and it is also poised to sell
a $500 million stake to Credit Suisse, sources close to the deal
said on Thursday.
In what may be China's largest-ever IPO, Construction Bank, the
country's number-three lender, is on track to list in October, the sources
said.
Depending on demand, the deal could top $6 billion, sources familiar
with the situation have said.
The listing application, approved by the Hong Kong stock exchange in a
closed-door hearing on
Thursday, estimates that the deal would value the bank at 6.1 to 7.7 times
its 2004 earnings, although that range is preliminary and may change, the
sources said.
The filing says the listing would raise a minimum of HK$40 billion
(US$5.1 billion), with shares indicated at a minimum of HK$1.52 each, one
source said.
A preliminary price range will be set following a round of
pre-marketing next week, and a
management marketing road show
is tentatively scheduled for early October.
Separately, Credit Suisse is expected to announce soon its investment
in Construction Bank, the sources said.
Credit Suisse would be the third big foreign investor in CCB after Bank
of America pledged to invest a total of $3 billion for a 9 percent stake.
Singapore government investment arm Temasek has pledged to put up about
$2.5 billion once the IPO is completed.
The Swiss bank's Credit Suisse First Boston investment banking arm has
been angling for a role on the
IPO for months, but the listing sponsors will be Morgan Stanley and China
International Capital Corp., the sources said.
A CSFB spokesman in Hong Kong declined to comment.
China Unicom Ltd., the country's number-two mobile telecoms carrier,
raised $5.59 billion in 2000 in the biggest-ever listing from China.
Construction Bank aims to launch its offering as soon as possible to
avoid competition for investor interest with the Hong Kong government's
planned $3 billion float of the Link Real Estate Investment Trust, which
is planned for November.
Bank of China, a rival state-backed "Big Four" lender, is planning an
IPO for next year.
(Agencies) | 
Updated: 2005-09-23 10:16
