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AgBank inches higher in Hong Kong portion of IPO

AgBank inches higher in Hong Kong portion of IPO

Agricultural Bank of China's shares inched up yesterday in the Hong Kong portion of its massive IPO, with success seen as a matter of pride for the world's third largest economy.
The lender's shares opened at 3.25 Hong Kong dollars (US$0.42), above the IPO price of 3.20 Hong Kong dollars, and touched US$3.31 before easing back to US$3.26 by lunch.
The last of China's "Big Four" state banks to go public could raise a record US$22.1 billion in a mammoth dual offering that opened in Shanghai on Thursday to a tepid investor response.
AgBank has not yet disclosed whether it will exercise an option to issue additional shares, a crucial factor in determining whether the sale would overtake rival Industrial and Commercial Bank of China's record-setting US$21.9 billion IPO in 2006.
AgBank chairman Xiang Junbo told reporters in Hong Kong the flotation was a "historic moment" and "the first step of the internationalisation of AgBank."
He later added that he was happy with AgBank's share price in light of weakness in the stock market: "I am very satisfied. It's really not too bad - 3.30 dollars," he said referring to the Hong Kong dollar share price.
A host of heavyweight foreign investors had been drummed up to help make a success of the Hong Kong portion of the sale. Investors included Qatar's sovereign investment fund, British bank Standard Chartered and Hong Kong's richest tycoon, Li Ka-shing.
The biggest investor in the Shanghai issue was China Life, the nation's largest life insurer by premium income.


Updated : 2021-01-27 09:27 GMT+08:00