Bank of China (BOC) could become the first company to launch an initial public offering (IPO) on the domestic bourse's main board by issuing around 20 billion yuan (US$2.5 billion) of A shares in June.

Wang Zhaowen, a spokesman for BOC, yesterday confirmed the bank will issue A shares very soon. But he did not give a timetable.

However, domestic business newspapers yesterday reported that the bank will likely be listed in June on the Shanghai Stock Exchange.

"The bank will probably become the first IPO on the domestic bourse's main board," China Business News said yesterday, quoting an investment banker who participated in the bank's listing issues.

The Shanghai-based Guotai Jun'an Securities, the Beijing-based CITIC Securities and Galaxy Securities have been hired as underwriters, a Guotai Jun'an staff member close to the deal told China Daily.

Speculation about the timing of the share issuance is based on fact, he indicated.
"As the Chinese saying goes, there are no waves without wind," he said, declining to be named.

A branch of the Bank of China (BOC) in Shanghai. The lender could become the first company to launch an initial public offering (IPO) on the domestic bourse's main board. [newsphoto]

"When to issue A shares depends on the performance of the A share market," BOC Spokesman Wang responded, adding that the bank will keep a close watch on the market and then decide when is the right time to act.

"It also depends on the trading of BOC's H shares in Hong Kong," Wang said.
According to Wang, BOC has already got the go-ahead from the relevant authorities including the China Securities Regulatory Commission (CSRC) to issue A shares.

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