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CHINA / index
CCB to raise 58.05b yuan from A-share listing
By Dai Yan (chinadaily.com.cn)
Updated: 2007-09-19 11:51
China Construction Bank (CCB), one of the nation's four big State-owned
commercial lenders, is expected to raise a record 58.05 billion yuan
(US$7.71 billion) after selling?9 billion A shares in its initial public
offering (IPO), at 6.45 yuan per share, according to a CCB announcement
issued today.
Employees work at a China Construction Bank branch in Hai'an, East
China's Jiangsu Province, in this October 23, 2006 file photo. The bank,
one of China's four big State-owned commercial lenders, will raise a
record 58.05 billion yuan (US$7.71 billion) after selling?9 billion A
shares in its initial public offering, according to an announcement
issued September 19, 2007. [newsphoto]?
The new record exceeded the 1.9 trillion yuan received by the Bank of
Beijing, the country's largest city commercial bank, earlier this month.
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The price is at the top of its range set earlier between 6.15 and 6.45
yuan per share. It implied a price-to-earnings ratio of 32.91 times the
bank's diluted earnings in 2006.
The IPO represents less than 3.85 percent of the expanded share capital
of 233.7 billion shares, and the proceeds would be used to boost its
capital adequacy ratio. The market value is expected to reach 1.6 trllion
yuan.
CCB will issue 2.7 billion shares to off-line investors and 63 billion to
on-line investors.
The bank's earnings per share in the first half of 2007 was 0.15 yuan,
compared with 0.12 yuan for the ICBC and Bank of China.
Its non-performing loans ratio stood at 2.95 percent at the end of June,
lower than the 3.29 percent half a year ago.
The bank has attracted a record 2.26 trillion yuan in subscriptions for
the IPO. Analysts said the record came as investors rushed to IPOs for
almost certain high price rises on debut and chased blue chips for stable
earnings as risks started to build on the heated domestic equity markets.
The shares are likely to start trading at 7.8 to 9.6 yuan on the Shanghai
Stock Exchange on September 25, experts said.
The government has encouraged the return of China's large red-chip
companies, mainland firms incorporated outside the mainland and listed in
Hong Kong, to mainland bourses to disperse excessive liquidity and help
cool down the stock markets.
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