Abstract:
The
Industrial and Commercial Bank of China IPO was launched at the same time on the Shanghai as well as on the Hong Kong stock exchange. Despite having separate procedures at both the exchanges, the IPO was successfully launched as much as $19.1 billion being raised in the process.
Set up in the year 1984, ICBC or Industrial and Commercial Bank of China, renders lending services as well as deposits to the several companies owned by the State. The pretax profit of the bank increased ten times over the last six years. In fact, the bank also shed its ratio of bad loans considerably registering 4.69% as of December 2005. There was a decrease of about 30 percentage points.
The
Industrial and Commercial Bank of China IPO was launched after receiving approval in the year 2006. The Industrial and Commercial Bank of China IPO was recorded at $19.1 billion. The orders equaled $500 billion. This was two times the market value of Citigroup (2006).
An interesting feature of the Industrial and Commercial Bank of China IPO was that the bank was the first ever to launch IPO s simultaneously in the Hong Kong stock exchange as well as the Shanghai stock exchange. The procedures followed in both the stock exchanges, namely, the Shanghai stock exchange as well as the Hong Kong stock exchange differ widely. The IPO of Industrial and Commercial Bank of China traded in the month of October, 2006. In fact it was ascertained that during that period, the Industrial and Commercial Bank of China bank had the capability of outdoing even Mitsubishi UFJ, Japan, whose value was during the same period approximately $135 billion.
The money that was raised from the Industrial and Commercial Bank of China IPO was made use of for the expansion of the bank's capital base. About 36.2%(2006) of ownership is maintained each in the bank by the country's Finance Ministry as well as another state held firm. An investor group led by Goldman Sachs owns about 7.4%(2006) in the bank. The Industrial and Commercial Bank of China IPO is represented at 14.8% per share.
More and more companies are being encouraged to become listed in the domestic market. This has been especially true after the reversal of the Shanghai index.