Top Biz News

ICBC opts for simultaneous listing

By Yu Lu (China Daily)
Updated: 2006-07-14 09:11

Previous reports said the ICBC would submit a listing application to the Hong Kong stock exchange in July for listing in October.

However, the Shanghai Securities News said whether the bank could get listed according to this timetable depended on government approval.

It said the China Securities Regulatory Commission had not approved its listing proposal. And the listing size and the financing proportion in Hong Kong and Shanghai had yet to be decided.

With Bank of China easily raising 20 billion yuan (US$2.5 billion) in the mainland's biggest IPO only a month after its Hong Kong listing, bankers believe the time is ripe for simultaneous listings, or even listing on the domestic market first.

The mainland is looking to boost the domestic market with high quality listings after the biggest mainland companies sold their shares overseas, mostly in Hong Kong.

"The stock performance of the big companies, like Bank of China, has heavy impacts on the overall stock market," said Dong Chen.

Completing a single price and simultaneous listing, however, is seen as complicated, as the Hong Kong and Shanghai markets differ in terms of mechanisms and environment.

Such a deal also requires two sets of investment banks, adding to the risk.

Sources said the bank has selected four local underwriters for its A-share listing, including China International Capital Co (CICC), CITIC Securities Co, Shenyin & Wanguo Securities Co and Guotai Jun'an Securities Co.

It appointed Credit Suisse, Deutsche Bank, Merrill Lynch, ICEA and a consortium led by CICC to underwrite its Hong Kong share sale at the beginning of this year.