China AgBank's set for massive stock debut
Thursday, 15 July 2010
SHANGHAI, July 14 (AFP): Agricultural Bank of China debuts on the Shanghai stock market Thursday, completing a great leap from peasant policy bank to capitalist darling in what is expected to be a world record IPO.
In the coming days, AgBank's performance in Shanghai and Hong Kong-where trading starts Friday-would signal whether it maximises the number of additional shares it can offer to raise a record 22.1 billion US dollars.
The debut of the last of China's "Big Four" state banks will also test the resilience of the Chinese stock market in a volatile global economic climate.
China is on track to be the world's biggest IPO market this year with up to 300 companies expected to raise 500 billion yuan (73.6 billion dollars) this year, according to PricewaterhouseCoopers.
Chinese IPO shares have gained 29 per cent on average in their first month of trading, according to Shanghai-based Jesa Investment and Management Co.
Mainland analysts are optimistic AgBank will soar on its debut. Its shares are expected to rise five to 15 per cent on their debut, according to Soochow Securities.
Hong Kong investors are likely to follow the lead of their mainland counterparts, said Jonathan Siu, research analyst at investment bank Core Pacific-Yamaichi in Hong Kong.
"The performance of the Hong Kong listing will very much depend on (Shanghai)," he told AFP. "If the (Shanghai) shares perform well on their debut, then it should be the same in Hong Kong."
In the coming days, AgBank's performance in Shanghai and Hong Kong-where trading starts Friday-would signal whether it maximises the number of additional shares it can offer to raise a record 22.1 billion US dollars.
The debut of the last of China's "Big Four" state banks will also test the resilience of the Chinese stock market in a volatile global economic climate.
China is on track to be the world's biggest IPO market this year with up to 300 companies expected to raise 500 billion yuan (73.6 billion dollars) this year, according to PricewaterhouseCoopers.
Chinese IPO shares have gained 29 per cent on average in their first month of trading, according to Shanghai-based Jesa Investment and Management Co.
Mainland analysts are optimistic AgBank will soar on its debut. Its shares are expected to rise five to 15 per cent on their debut, according to Soochow Securities.
Hong Kong investors are likely to follow the lead of their mainland counterparts, said Jonathan Siu, research analyst at investment bank Core Pacific-Yamaichi in Hong Kong.
"The performance of the Hong Kong listing will very much depend on (Shanghai)," he told AFP. "If the (Shanghai) shares perform well on their debut, then it should be the same in Hong Kong."