Agric Bank of China issues additional shares Hong Kong IPO
Agricultural Bank of China said Thursday it has fully exercised the overallotment option of its Hong Kong share offering, bringing the total amount raised in the city to 12.6 billion US dollars.
The lender said in a statement to the Hong Kong Stock Exchange that it raised an additional 1.56 billion US dollars by selling 3.81 billion extra shares at 3.20 Hong Kong dollars (0.41 US) each.
It has now raised 20.79 billion dollars.
The overallotment represented 15 percent of the shares it initially sold in the Hong Kong initial public offering, the statement said.
But the bank said it had not exercised the overallotment option on its A Share offering in Shanghai. The lead underwriters of the A Share offering may exercise the option 30 days after its Shanghai debut on July 15, the statement said.
AgBank — the last of China’s Big Four state banks to list — raised a total of 19.23 billion US dollars from its shares before it started to trade in Shanghai and Hong Kong this month.
The share sale would amount to 22.14 billion US dollars and become the world’s largest if the lender also exercises its option to issue additional shares in Shanghai.
The current record was set by Industrial and Commercial Bank of China, which raised 21.9 billion dollars in it 2006 IPO.
Agbank’s shares fell 0.28 percent to 3.57 Hong Kong dollars in morning trade Thursday, although it is still up from its initial offering price of 3.20 Hong Kong dollars.