BIZCHINA / Center |
Bank sets range for dual listingBy Bei Hu (Shanghai Daily)Updated: 2007-04-13 16:37 China CITIC Bank Corp yesterday narrowed the price range for its Hong Kong and Shanghai initial public offering in the world's second-largest stock sale this year, an e-mail to investors showed. The Beijing-based bank plans to offer 2.3 billion new yuan-denominated shares in Shanghai at five yuan to 5.8 yuan apiece, from a previous 4.66 yuan to 6.1 yuan each, according to the e-mail, a copy of which was given to Bloomberg News.
The new range will allow the bank to raise as much as 13.34 billion yuan (US$1.7 billion) from the Shanghai sale of a six percent stake. It could also fetch as much as HK$28.66 billion (US$3.7 billion) selling 4.89 billion new shares in Hong Kong. China CITIC cut the top end of the range because of technical reasons related to the price-setting process in the Shanghai portion of the sale, the e-mail said. CITIC Bank revised up the lower price after strong investor demand. At the top end of the ranges, CITIC Bank's sale could be the second-largest stock offering globally in the year to date, according to data compiled by Bloomberg. The new range cuts the maximum amount the bank can raise by about US$300 million. International institutions have ordered more shares than have been offered to them in Hong Kong, the e-mail said. The price range values CITIC Bank at 2.57 times to 2.75 times its estimated book value this year. The bank has said it would set a unified price range for the Hong Kong and Shanghai share sales after accounting for the exchange rate. (For more biz stories, please visit Industry Updates) |
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