Mideast sovereign funds eye Agricultural Bank IPO

14:22, June 01, 2010      

Email | Print | Subscribe | Comments | Forum 

SEVERAL Middle Eastern sovereign wealth funds are holding talks with the Agricultural Bank of China about investing in its initial public offering (IPO) in Shanghai and Hong Kong this year, the China Business News reported yesterday.

The Kuwait Investment Authority intends to invest about US$1 billion to become a cornerstone investor in the Chinese bank’s US$30 billion IPO, which would be the world’s largest, the newspaper reported, quoting a source at one of the underwriters.

The newspaper also said an institutional investor from the United Arab Emirates was holding talks, but it did not name the other sovereign wealth funds involved in the discussions.

Agricultural Bank, set to become the last of China’s four largest banks to list its shares, has cleared a preliminary hearing with the country’s securities regulator, local media reported last week.

The bank received a US$19 billion capital injection from Central Huijin, an investment arm of China’s sovereign fund, at the end of 2008. It also hived off 800 billion yuan (US$117.1 billion) in bad loans to clean up its books in preparation for the listing.

China’s National Social Security Fund has invested 15 billion yuan, Ji Guoqiang, an official with the fund, said last month.

The fund hopes Agricultural Bank will list as soon as possible, Ji said, although big swings in stock markets locally and globally have cast some doubt over whether the bank might postpone its share issue to wait for market conditions to improve.

Agricultural Bank is expected to get regulatory approval for the IPO in early June, the China Business News reported Friday, quoting a banking source.

Another local newspaper, the Securities Daily, said last week that PetroChina, the country’s biggest oil and gas producer, could be brought on as a strategic investor for AgBank’s IPO.



  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • A ceremony is held in Taipei, southeast China's Taiwan, on Sept. 28, 2011, to commemorate the 2,562nd birthday of Confucius (551-479 BC), a Chinese thinker, educationist and philosopher. (Xinhua/Wu Ching-teng)
  • The world's first Boeing 787 Dreamliner for delivery arrives at Haneda airport in Tokyo, capital of Japan, on Sept. 28, 2011. The Boeing 787 Dreamliner, whose buyer is All Nippon Airways (ANA), will implement a flight of ANA on Oct. 26 from Tokyo's Narita Airport to Hong Kong in south China. (Xinhua/Ji Chunpeng)
  • A Libyan National Transitional Council (NTC) fighter shows what is believed to be human jawbone found inside a mass grave near Abu Salim prison in Tripoli, Libya, Spet. 27, 2011. The NTC on Sunday said they had found a mass grave containing the bodies of 1,270 people killed by Gaddafi's security forces in a 1996 massacre at Abu Salim prison in southern Tripoli. (Xinhua/Li Muzi)
  • Rescue workers and local residents search for survivors after a building collapsed in old Delhi, India, Sept. 27, 2011. At least 10 people were killed and 35 injured when an old three-storey building collapsed. More than a dozen people are still feared trapped under the debris, police said. (Xinhua/Partha Sarkar)
  • A visitor has flying experience in the windmill castle of Jinshitan National Holiday resort in Dalian, northeast China's Liaoning Province, Sept. 27, 2011. The castle is a 23-meter-high building with 21 meters in diameter. The castle uses wind tunnel to make objects floating in the air. It is the first indoor stadium in China, which enables people to have flying experience. (Xinhua/Zhang Chunlei)
  • Forces of the Libyan National Transitional Council (NTC) shoot shells to the fighters loyal to Muammar Gaddafi outside Bani Walid, Libya, Sept. 27, 2011. Bani Walid is still occupied by fighters loyal to Muammar Gaddafi. (Xinhua/Hamza Turkia)
Hot Forum Discussion