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China's Agbank Prices Ipo To Be World's Largest

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http://uk.reuters.com/article/idUKTRE6651BN20100706

Agricultural Bank of China priced its Hong Kong and Shanghai dual listing on Tuesday, a deal that would break all IPO records by raising more than $22 billion (14.5 billion pounds) when adding in over-allotment shares.

The initial public offering (IPO), which is raising funds to replenish capital, still faces a tough aftermarket, with a debut planned for July 15 in Shanghai, and a day later in Hong Kong. It has fought through a plunging Chinese stock market and a euro zone debt crisis that has shaken other markets across the globe.

Despite the headwinds, China's third largest bank by assets was able to pull in strong demand for the IPO. AgBank, the last of China's big banking institutions to go public, has a sprawling network of branches in China's rural parts but also a presence in its major cities as well.

.........

The initial public offering (IPO), which is raising funds to replenish capital, still faces a tough aftermarket, with a debut planned for July 15 in Shanghai, and a day later in Hong Kong. It has fought through a plunging Chinese stock market and a euro zone debt crisis that has shaken other markets across the globe.

Despite the headwinds, China's third largest bank by assets was able to pull in strong demand for the IPO. AgBank, the last of China's big banking institutions to go public, has a sprawling network of branches in China's rural parts but also a presence in its major cities as well.

Only three years ago, AgBank, founded by Mao Zedong in 1951, was technically insolvent, with non-performing loans of around 24 percent. Its turnaround, after a $30 billion bailout and bad loan carve-out, underscores the strength of China's rapidly expanding economy and the state's tight grip on the banking industry.

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AgBank ABC.UL will sell 22.24 billion yuan (2.2 billion pound)-denominated A-shares at 2.68 yuan apiece, after indicating a 2.52-2.68 yuan range. That means AgBank will raise a total of $19.3 billion, but a greenshoe over-allotment of shares would expand the proceeds to $22.2 billion.

So what will the price of this bank be in 6 months time?

A huge turnaround in 3 years from being insolvent to being the largest IPO in the world.

Perhaps we should get the managers that sorted this out to tackle the worlds global debt problem?

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  • 152 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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