Wednesday, May 11, 2005
BoComm IPO to proceed in Shanghai & Hong Kong
China's BoComm to proceed with dual Hong Kong, Shanghai IPO - report 05.49 11/05/05 close
BEIJING (AFX) - The Bank of Communications, China's fifth-largest lender, will go ahead with plans for a dual Hong Kong and Shanghai IPO, offering 5.86 bln H-shares and 3.91 bln A-shares, the China Business News reported. The newspaper cited offer documents as saying the public offerings of H-shares in Hong Kong and domestic currency A-shares will be made simultaneously. The report contradicted other recent media reports that have said the bank will abandon or delay its Shanghai offer due to poor market conditions and problems with the wide gap between share prices on the two markets. The China Business News said that there will be a 15 pct share overallotment option in the Hong Kong portion of the initial public offer. The report said the Hong Kong offer will represent 12 pct of the bank's expanded share capital while the Shanghai portion will be equal to 8 pct. Of the 5.86 bln H-shares, 1.94 bln shares will be sold to HSBC Holdings to allow the London-based financial group to maintain its 19.9 pct stake in the Bank of Communications, according to the report. The report also said the bank's core capital adequacy ratio was 6.77 pct at the end of 2004 and its 2005 net profit is expected to reach 7.87 bln yuan. (1 usd = 8.3 yuan, 7.8 hkd) derek.jiang@xinhuafinance.com
BEIJING (AFX) - The Bank of Communications, China's fifth-largest lender, will go ahead with plans for a dual Hong Kong and Shanghai IPO, offering 5.86 bln H-shares and 3.91 bln A-shares, the China Business News reported. The newspaper cited offer documents as saying the public offerings of H-shares in Hong Kong and domestic currency A-shares will be made simultaneously. The report contradicted other recent media reports that have said the bank will abandon or delay its Shanghai offer due to poor market conditions and problems with the wide gap between share prices on the two markets. The China Business News said that there will be a 15 pct share overallotment option in the Hong Kong portion of the initial public offer. The report said the Hong Kong offer will represent 12 pct of the bank's expanded share capital while the Shanghai portion will be equal to 8 pct. Of the 5.86 bln H-shares, 1.94 bln shares will be sold to HSBC Holdings to allow the London-based financial group to maintain its 19.9 pct stake in the Bank of Communications, according to the report. The report also said the bank's core capital adequacy ratio was 6.77 pct at the end of 2004 and its 2005 net profit is expected to reach 7.87 bln yuan. (1 usd = 8.3 yuan, 7.8 hkd) derek.jiang@xinhuafinance.com
