Top Biz News

Industrial Bank stock lower than predictions

By Zhang Lu (China Daily)
Updated: 2007-02-06 08:55

The Industrial Bank Co Ltd, a mid-sized joint stock bank, saw its share price end the first day of trading lower than previous market expectations amid weakness in the overall market.

Related readings:  Industrial Bank shares gain 53% on debut  Industrial Bank A-share IPO priced  Industrial Bank gets approval to sell shares on mainland

Shares opened on theShanghai Stock Exchangeat 24.80 yuan yesterday, at the low end of most analysts' predictions of 24 to 26 yuan, after aninitial public offering(IPO) price of 15.98 yuan.

The bank's shares then slid for most of the day to close at 22.18 yuan, up 39 percent over its IPO price.

But Gao Jianping, the bank's chairman, said at the share debut ceremony yesterday that he was satisfied with the stock's price and was optimistic about its future performance.

The bank raised 16 billion yuan by selling 1 billion shares on theShanghaibourse last month.

It attracted a massive 1.16 trillion yuan in subscriptions, over-subscribed by 73 times, a record for a domestic Chinese IPO, surpassing China Life's 810 billion yuan subscription in December.

But the domestic market began falling soon after the bank's IPO, hit by expectation the government will take measures to cool the market.

"The lower price of the Industrial Bank's shares was influenced by the recent market setback," said She Minhua, a banking analyst from CITIC China Securities.