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).
Declared China's best retail bank by fund managers and analysts, CMB shares surged 25% when they debuted on the HKSE on September 22 2006 and closed at HK$10.68 each.
Davis Polk & Wardwell advised CMB on US law and Jun He Law Offices advised on PRC law. Linklaters, Jones Day and Commerce & Finance Law Offices advised the underwriters.
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