Agricultural Bank of China set to apply for $30b IPO

10:49, May 04, 2010      

Email | Print | Subscribe | Comments | Forum 

Agricultural Bank of China (Agbank), the smallest of the country's Big Four banks, will apply for a larger-than-expected $30 billion IPO, racing with rivals to raise funds as Beijing mops up excess cash from the economy.

Agbank plans to submit formal applications for a dual listing in Shanghai and Hong Kong this week with an eye to launching its massive IPO, the world's biggest ever, in July or even earlier, sources told Reuters Sunday.

"We all know the market window could be closed anytime within the next few months so whoever can sell their IPO first wins," said a source who was briefed on the bank's IPO plan.

"After China Construction Bank (CCB) announced its rights issue plan, Agbank definitely felt more hurried to push its IPO plan forward," said one source who declined to be named because he was not authorized to speak to the media.

Agbank's top management has asked its underwriters to aim to bring the size of its IPO close to $30 billion versus its original, more modest target of at least $20 billion, said the sources.

The bank's more ambitious, larger IPO goal came just days after two major domestic rivals, CCB and Industrial and Commercial Bank of China (ICBC), settled out their mega-sized fund-raising plans separately as Beijing asked lenders to boost capital amid potential credit risk concerns.

CCB announced last week its up to $11 billion rights issue plan. ICBC will begin to seek mandates for its up to $12 billion capital-raising plan this week, sources have said.

China Sunday raised the proportion of deposits that lenders must keep in reserve at the central bank, another step in its months-old campaign to mop up excess cash in the economy at a time when inflation is on the rise.

Beijing is keen to help Agbank finish its restructuring and IPO so it can better support the country's agriculture-related sectors.

Source: Global Times

(Editor:黄蓓蓓)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • On Sept. 26, a resident passes by a flower terrace decorated for the coming National Day. (Xinhua/Hang Xingwei)
  • The photo, taken on Sept. 26, shows the SWAT team ready for the joint exercise. (Xinhua/Wangkai)
  • Two metro trains in Shanghai collided Tuesday afternoon, and an identified number of passengers were injured in the accident, the Shanghai-based eastday.com reported. Equipment failures were believed to have caused the crash on the Line 10 subway, Xinhua quoted local subway operator as saying.
  • An employee at a gold store in Yiwu, located in east China's Zhejiang province, shows gold jewelry on Monday.(Xinhua/Zhang Jiancheng)
  • Tourists ride camels near China's largest desert lake Hongjiannao in Yulin, north China's Shaanx Province, Sept. 24, 2011. Hongjiannao is shrinking as a result of climate change and human activities, and may vanish in a few decades. Its lake area, which measured more than 6,700 hectares in 1996, has shrunk to 4,180 hectares. Its water level is declining by 20-30 centimeters annually and its water PH value has risen to 9.0-9.42 from 7.4-7.8. (Xinhua/Liu Yu)
  • Actors perform royal dance at the Gyeongbok Palace in Seoul, Sept. 27, 2011. A ceremony commemorating the 38th South Korea Sightseeing Day was held in Gyeongbok Palace on Tuesday. (Xinhua/He Lulu)
Hot Forum Discussion