Bank of China (Hong Kong) Ltd. will list on the Hong Kong Stock
Exchange on July 25, the bank said Sunday, although plans for a
dual public float in New York have temporarily been shelved.
Speaking at a press conference to announce the bank's initial
public offering (IPO), Chief Executive Liu Jianbao said the Hong
Kong arm of the leading state-owned Chinese bank intended to sell
up to 25 percent of the company's stock through the share
offer.
The indicative price range for the institutional offering of
approximately 2.6 billion shares has been set at HK$6.93-9.50
(US$0.89-1.22) for institutional investors, he said.
"We plan to offer an incentive to retail investors in the form of a
five percent discount to the institutional offer price," said
Liu.
Standard Chartered Bank will become a strategic investor through
the IPO, paying US$50 million for less than a 2.5 percent stake in
Bank of China (Hong Kong).
Its stake is dependant on the price of the offering and whether the
full allotment of 25 percent of Bank of China's (Hong Kong) shares
are sold.
"While we compete in some areas, our two banks have been good
friends for a long time and we intend to explore areas of potential
strategic cooperation with Standard and Chartered Bank," said Bank
of China chairman Liu Mingkang.
However, a planned dual listing in New York had been put on hold
indefinitely.
"We considered very carefully our listing options, including in the
US. But the Bank of China has its home in Hong Kong and we think it
is right to list in the Hong Kong market," said Liu Mingkang.
One factor which had swayed the bank had been the stringent listing
requirements in the US "which would have required a lot of hard
work," he admitted.
However, Liu denied the delay to its original plan for a September
listing had been due to media reports which had suggested
instability on global financial markets following the terrorist
attacks in the United States in September last year.
On
listing, the bank will become the territory's second largest listed
bank on assets behind HSBC.
The bank is one of Hong Kong's three currency note issuing banks.
The others are HSBC Holdings plc and Standard Chartered Bank.
(
July 8, 2002)