Dealmakers wrestle for ICBC IPO

Morgan Stanley, Merrill Lynch and rival investment banks are jostling to underwrite a $10 billion listing of Industrial & Commercial Bank of China, potentially the mainland's biggest IPO and one that could yield $300 million in banking fees.

China's top commercial bank is slated to be the third Beijing-backed lender to list overseas, and sources familiar with the matter said Merrill, Morgan Stanley, Goldman Sachs, Deutsche Bank and Credit Suisse are in the hunt for an offering that could top last year's record $9.2 billion China Construction Bank (0939.HK) listing.

One Beijing-based source close to ICBC said Wall Street's Morgan Stanley and Zurich-based Credit Suisse's prospects looked brightest, and the bank would prefer to use a European and U.S. sponsor to access investors in both markets.

China International Capital Corp. (CICC), the mainland's top domestic securities house and consultant to ICBC's restructuring to become a shareholding company last year, was also in the hunt for the lucrative and prestigious mandate, the sources said.

"Everybody wants to eat the fatty meat," said a Beijing-based banker close to CICC.

ICBC owns part of ICEA, a small investment banking joint venture with Hong Kong's Bank of East Asia that may also win a role in the Hong Kong listing expected this year or next.

Credit Suisse's position may be helped after it set up an asset management company with ICBC in July, the country's first bank-run fund venture, which had raised $537 million for its first mutual fund in September.

(Chinadaily)

IPO: Initial Public Offering（首次公开招股）

underwrite: assume financial responsibility for; guarantee against failure（认购，承购公债、股份等）