Top Biz News

BOC gears up for largest mainland IPO

By Fei Ya (China Daily)
Updated: 2006-06-07 08:51

China's domestic bourse is expected to embrace the largest initial public offering (IPO) in history after the government lifted the year-long ban on the issuing of A shares.

Bank of China (BOC), the country's second largest lender, said it has applied to issue as many as 20 billion yuan (US$2.5 billion) A shares on the domestic bourse.

That would be the largest domestic IPO to date and the first company to "return" home after being listed overseas.

"We plan to issue as many as 10 billion A shares on the domestic bourse, which would occupy not more than 3.945 per cent of total equity," the bank said in its share sale document submitted to the China Securities Regulatory Commission (CSRC).

A public offering review committee will hold a hearing on Friday, the CSRC said late on Monday. The IPO hearing will put BOC on schedule to complete its domestic listing by late June or early July.

The proposed sale will mean the bank  with 3.9 trillion yuan (US$ 487.5 billion) in total assets and 27.49 billon yuan (US$3.436 billion) in net profit in 2005  will surpass Sinopec to become the largest listed company on the domestic bourse in terms of the total volume of issued shares, total assets and net assets.

Sinopec, the nation's largest oil refiner, raised 11.8 billion yuan (US$1.5 billion) issuing A shares on the Shanghai Stock Exchange in 2001.