The Bank of Communications, China's fifth-largest lender, began
Wednesday to accept bids that will determine the price of shares in
its initial public offering.
The bidding will last till next Monday in major Chinese cities
of Shanghai, Beijing, Shenzhen, and Guangzhou, said the Kong
Kong-listed bank in a statement to the Shanghai Stock Exchange on
Wednesday.
It said the offer will be open to subscribers from institutional
investors next Tuesday and Wednesday and those from retail
investors next Wednesday, adding the IPO will be priced next
Thursday.
The bank, in which HSBC Holdings Plc. holds 19.9 percent stake,
plans to issue 3.2 billion A-shares, accounting for 6.5 percent of
the expanded stock capital.
It said 25 percent of the offer will be allocated to
institutional investors, and 45 percent will be reserved for retail
investors. The rest will be offered to the strategic investors.
Institutional investors are required to hold shares for a
minimum of three months, while strategic investors are required to
hold half of their shares for 12 months and the other half for 18
months, according to the statement.
Analysts said its IPO for Shanghai Exchange shares will likely
raise 20 to 24 billion yuan (US$3.1 billion).
In 2006 its net profits surged 32.7 percent to 12.27 billion
yuan and the value of its assets jumped 20.8 percent to 1.71
trillion yuan, the bank said in March.
(Xinhua News Agency April 19, 2007)