Subscribe free to our newsletters via your
  Energy News  

Subscribe free to our newsletters via your

AgBank prices Hong Kong IPO lower than expected

by Staff Writers
Hong Kong (AFP) July 7, 2010
Agricultural Bank of China has priced the Hong Kong portion of its massive stock sale at 3.20 Hong Kong dollars (41 cents) per share, below the top end of its expected range.

AgBank -- the last of China's big four lenders to float its shares -- had said the stock would be priced between 2.88 Hong Kong dollars and 3.48 Hong Kong dollars a share, raising 13.1 billion US dollars at the top end.

The lender was also expected to fetch as much as 10.1 billion US dollars in a dual Shanghai sale.

The Hong Kong share price throws into question whether AgBank will still overtake Industrial and Commercial Bank of China's record 21.9-billion-US-dollar offering in 2006.

AgBank said it would announce the offering's share price on Friday, but Dow Jones Newswires, citing unnamed sources, said late Tuesday the stock had been priced at 3.20 Hong Kong dollars per share.

The rural lender's Shanghai share sale has a price range of 2.52-2.68 yuan (37-39 US cents) a share.

The Shanghai pricing was expected Wednesday, with the lender's stock set to begin trading in Hong Kong on July 16 and a day earlier in Shanghai.

The bank has in recent weeks scaled back its original 30 billion US dollar target amid market volatility tied to concerns about the global economy and questions about how investors will react to a balance sheet dented by bad loans.

The portion of Hong Kong shares for institutional investors may have been fully taken up, with the offering six to 10 times oversubscribed, Dow Jones Newswires has reported, citing unnamed sources.

Similar demand was expected from institutional investors for the Shanghai sale, although there have been reports of tepid interest from retail investors.

AgBank could be hamstrung by its long-held mandate to advance loans to poor rural farmers, instead of targeting higher growth areas, said Cheng Yuk-shing, an associate economics professor at Hong Kong Baptist University.

"The market is probably worried that the performance of (AgBank) won't be as good as the other state banks," he told AFP. "Management is trying to reconcile the bank's policy mission with how to drive profitability."

Share This Article With Planet Earth DiggDigg RedditReddit
YahooMyWebYahooMyWeb GoogleGoogle FacebookFacebook

Related Links
Farming Today - Suppliers and Technology

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

US Approach To Farming Should Change To Meet New Challenges
Washington DC (SPX) Jul 06, 2010
U.S. farmers are under pressure to produce more, pollute less, fulfill consumer preferences, and make a living - all with increasingly scarce natural resources and the uncertain effects of climate change, says a new report from the National Research Council. To help U.S. agriculture evolve to meet these demands, the report concludes, national agricultural policies and research programs sho ... read more

TerraSAR-X Image Of The Month: The Nazca Lines In Peru

Predicting Dust Storms With Infrared Satellites

Saudi Scientists To Visit India To Seek ISRO Assistance

CryoSat-2 Exceeding Expectations

Skyhook Wireless Partners With Samsung Electronics For Leading Location System

Telogis Expands Reach Into Construction And Heavy Lifting Sectors

Global Number Of Traffic Information Users To Exceed 370 Million By 2015

Carrier Corp. Greens Commercial Vehicle Fleet

Greenpeace names and shames companies over Indonesia paper

Soil-Borne Pathogens Drive Tree Diversity In Forests

Biodiversity's Holy Grail Is In The Soil

New Brazil mill responds to surging demand

New Ethanol Fact Book Highlights Benefits Of U.S. Ethanol Program

New Study Predicts Yield For Biofuel Jatropha

Fine-Tuning Growth Conditions Helps Cyanobacteria Flourish

Brazilian Sugarcane Industry's 'Virtual Mill,' A Hit At Major Events

Sol Ventus Partners Announces First Large Solar Array For Ohio Schools

Xcel Energy's First-Ever Solar-Coal Project Is Running

Much Cheaper Recipe For Making Solar Cells

Conditional Federal Loan Guarantees For Abengoa Solar

Study Shows Stability And Utility Of Floating Wind Turbines

Leading French Wind Farm Developer Says Yes To Triton

Floating ocean wind turbines proposed

China to dominate wind power

Carbon monoxide kills nine miners in China

Nine trapped in flooded China coal mine: state media

China coal mine explosion kills 47

Six rescued after three days in flooded China coal mine

Celebrations and sadness as Dalai Lama turns 75

Lenovo says Apple missing huge opportunities in China

China sentences another Tibetan environmentalist

China orders online sellers to register personal details

The content herein, unless otherwise known to be public domain, are Copyright 1995-2010 - SpaceDaily. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement