China Construction Bank raises 58 bln yuan in Shanghai IPO
19/9/2007 17:00
China Construction Bank (CCB), the country's second largest commercial
bank, raised 58.05 billion yuan (US$7.7 billion) in its Shanghai initial public
offering (IPO), the Shanghai Securities News reported today.
This made CCB's
IPO the biggest domestic listing, exceeding the 46.6 billion yuan of the
Industrial and Commercial Bank of China (ICBC) in October last year.
The
bank, Chinese partner of the American Bank, set the price for its IPO at 6.45
per share, the high end of its price range, due to record subscriptions. The
price translated into a price-to-earnings ratio of 32.91 times.
It attracted
2.26 trillion yuan in subscriptions for its yuan-denominated A-share sale,
exceeding the 1.9 trillion yuan received by the Bank of Beijing, the country's
largest city commercial bank a week ago.
Analysts said investors chased CCB's
shares because of its good profitability and bright growth prospect.
The bank
issued 9 billion shares, less than 3.85 percent of the expanded capital after
the IPO and the proceeds would be used to boost its capital adequacy
ratio.
The bank's earnings per share in the first half of 2007 was 0.15 yuan,
compared with 0.12 yuan for the ICBC and Bank of China.
Its non-performing
loans ratio stood at 2.95 percent at the end of June, lower than the 3.29
percent half a year ago.
The shares are likely to start trading at 7.8 to 9.6
yuan on the Shanghai Stock Exchange on Sept. 25, the newspaper said.
The
Chinese government encourages its red-chip companies to launch the
yuan-denominated A-share IPOs amid efforts to absorb excessive liquidity and
help cool down the heated stock market that has more than doubled since the
beginning of the year.
On Monday the China Securities Regulatory Commission
gave go-ahead to the IPO plan of another red-chip China Shenhua, the country's
largest coal producer, to issue up to 1.8 billion
A-shares.
Xinhua
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