CMB quadruples IPO shares on offer

October 02, 2006 | BY

clpstaff &clp articles

China Merchants Bank's (CMB) initial public offering (IPO) was oversubscribed by 266 times when investors rushed to buy a share of the retail portion of…

China Merchants Bank's (CMB) initial public offering (IPO) was oversubscribed by 266 times when investors rushed to buy a share of the retail portion of the 2.2 billion H-shares offered in Hong Kong.

CMB, the sixth-largest lender in China, planned to raise up to HK$18.8 billion (US$2.4 billion). Many local investors, who queued in lines more than 100 metres long to obtain the IPO subscription forms, are buying their shares with borrowed money or margin financing, reports China Daily.

The bank currently has the largest share of the credit card market in China and is the fourth mainland bank to list on the Hong Kong Stock Exchange (HKSE).

This premium content is reserved for
China Law & Practice Subscribers.

  • A database of over 3,000 essential documents including key PRC legislation translated into English
  • A choice of newsletters to alert you to changes affecting your business including sector specific updates
  • Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
For enterprise-wide or corporate enquiries, please contact our experienced Sales Professionals at +44 (0)203 868 7546 or [email protected]