华尔街日报：中国工商银行完成世界上最大IPO
ICBC Completes World's Biggest IPO
BEIJING -- China's biggest bank completed the world's biggest initial share sale late last night, raising as much as $21.9 billion.
At a meeting in San Francisco, Industrial & Commercial Bank of China Ltd. and its advisers set the initial public offering price at the top end of an indicative range, at HK$3.07 (39 U.S. cents) a share, according to a person familiar with the matter. That means ICBC, as the bank is known, raised at least $19.07 billion in the sale, besting Japan's NTT Mobile Communications Network Inc., whose $18.4 billion IPO in 1998 had been the biggest. The ICBC deal could still increase by 15% to $21.9 billion if an overallotment option is exercised.
Having generated more than $300 billion of demand from global institutional investors, the deal highlights China's growing importance on international capital markets. For the past decade, the country's big state-owned companies have turned to global markets to become more market-oriented, to improve transparency and disclosure, and to fortify their capital bases. In the past two years, as the nation's top lenders have begun going public, China's role in global markets has grown even more.
Last year, Chinese companies raised $25.9 billion from international markets, more than twice the previous year, according to Thomson Financial. Stock sales by Chinese companies will double again this year thanks to ICBC, the nation's biggest bank by assets.
Share sales by Chinese companies are also accounting for a greater share of global-equity sales -- 5.2% last year, by value, compared with 2.8% five years before, according to Thomson. This year, Chinese companies are on track to account for about 10% of the global total.
It is the country's biggest banks that have made that happen. ICBC and China's second- and third-largest banks have raised more than $40 billion in the past 12 months. Despite a history of bad loans, fraud and poor disclosure, China's banks are seen by global investors as the best way to gain exposure to the world's fastest-growing major economy. In the third quarter, China's gross domestic product expanded by an annual rate of 10.4%. State lenders also have broad exposure to the country's powerful exporters, which sold more than $690 billion of goods in the first nine months of the year.
In the past year, sentiment toward China's lenders has made a 180-degree shift. The view that they are inefficient lenders with poor ability to evaluate risk has been overtaken by a sense of their potential. "There is a lot of euphoria about the banks," says Jonathan Anderson, an economist at UBS AG. "Right now, investors see Chinese banks as high margin and high growth."
Merrill Lynch & Co., Credit Suisse Group, Deutsche Bank AG, China International Capital Corp. and ICBC's investment-banking unit are managing the global offering.
BEIJING -- China's biggest bank completed the world's biggest initial share sale late last night, raising as much as $21.9 billion.
At a meeting in San Francisco, Industrial & Commercial Bank of China Ltd. and its advisers set the initial public offering price at the top end of an indicative range, at HK$3.07 (39 U.S. cents) a share, according to a person familiar with the matter. That means ICBC, as the bank is known, raised at least $19.07 billion in the sale, besting Japan's NTT Mobile Communications Network Inc., whose $18.4 billion IPO in 1998 had been the biggest. The ICBC deal could still increase by 15% to $21.9 billion if an overallotment option is exercised.
Having generated more than $300 billion of demand from global institutional investors, the deal highlights China's growing importance on international capital markets. For the past decade, the country's big state-owned companies have turned to global markets to become more market-oriented, to improve transparency and disclosure, and to fortify their capital bases. In the past two years, as the nation's top lenders have begun going public, China's role in global markets has grown even more.
Last year, Chinese companies raised $25.9 billion from international markets, more than twice the previous year, according to Thomson Financial. Stock sales by Chinese companies will double again this year thanks to ICBC, the nation's biggest bank by assets.
Share sales by Chinese companies are also accounting for a greater share of global-equity sales -- 5.2% last year, by value, compared with 2.8% five years before, according to Thomson. This year, Chinese companies are on track to account for about 10% of the global total.
It is the country's biggest banks that have made that happen. ICBC and China's second- and third-largest banks have raised more than $40 billion in the past 12 months. Despite a history of bad loans, fraud and poor disclosure, China's banks are seen by global investors as the best way to gain exposure to the world's fastest-growing major economy. In the third quarter, China's gross domestic product expanded by an annual rate of 10.4%. State lenders also have broad exposure to the country's powerful exporters, which sold more than $690 billion of goods in the first nine months of the year.
In the past year, sentiment toward China's lenders has made a 180-degree shift. The view that they are inefficient lenders with poor ability to evaluate risk has been overtaken by a sense of their potential. "There is a lot of euphoria about the banks," says Jonathan Anderson, an economist at UBS AG. "Right now, investors see Chinese banks as high margin and high growth."
Merrill Lynch & Co., Credit Suisse Group, Deutsche Bank AG, China International Capital Corp. and ICBC's investment-banking unit are managing the global offering.
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