ICBC's dual IPO sets new record

October 31, 2006 | BY

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In the world's biggest initial public offering (IPO) to date, the dual listing of Industrial & Commercial Bank of China (ICBC), China's biggest bank by…

In the world's biggest initial public offering (IPO) to date, the dual listing of Industrial & Commercial Bank of China (ICBC), China's biggest bank by assets, raised US$19.1 billion. Marking the first simultaneous IPO of shares in Hong Kong and Shanghai, ICBC's shares began trading in both markets on October 27 2006.

ICBC priced its H-shares (trading in Hong Kong) at the top end of expectations, at HK$3.07 (US$0.39) per share, and its A-shares (trading in China) at Rmb3.12 (US$0.39) per share. On their debut, the shares increased by 14.66% and 5.13% respectively.

ICBC initially offered 35.4 billion H-shares and 13 billion A-shares for its dual listing on October 27 2006. However, due to strong investor demand, the over-allotment option was exercised and the number of shares on offer was increased to 14.95 billion A-shares and 40.7 billion H-shares.

According to law firm Herbert Smith, which advised ICBC on its IPO, the Hong Kong retail tranche was more than 70 times oversubscribed and 30 times oversubscribed in the global institutional tranche.

Previously, the world's largest IPO record of US$18.4 billion was set by NTT DoCoMo in 1998.

ICBC was also advised by Davis Polk & Wardwell on US law and King & Wood on PRC law. Freshfields Bruckhaus Deringer provided counsel to the underwriters, which included Merrill Lynch, Deutsche Bank and Credit Suisse. The underwriters appointed Shearman & Sterling to provide US law advice and Haiwen & Partners to provide PRC law advice.

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