Money

AgriBank gains 2.2% in HK debut

(Agencies)
Updated: 2010-07-16 16:49

Special Coverage: Focus on ABC's IPO Plan Related readings:  ABC shares open 1.56% higher in HK debut  ABC shares make a modest debut  Agricultural Bank of China says HK IPO 5.87 times oversubscribed  Agbank profit up 40% to 46b yuan

Agricultural Bank's Hong Kong price represents 1.65 times end-2010 book value as estimated by the IPO underwriters. That compares with 2.15 times for ICBC, 2.06 times for China Construction Bank Corp, and 1.56 times for Bank of China.

The closing price in Shanghai yesterday valued Agricultural Bank shares at 1.59 times estimated book value, a 6 percent discount to the Hong Kong IPO price.

"For Agricultural Bank to be successfully listed and be at least able to keep above the IPO price in the middle of all this is already quite an achievement," Daniel Jim, managing director at Tripod Management Ltd, said in a Bloomberg TV interview before trading started today.

Agricultural Bank is the last major Chinese bank to go public, wrapping up a decade-long overhaul of the nation's banking industry that cost an estimated $650 billion. Bank of Communications Co, Construction Bank, Bank of China and ICBC sold shares between June 2005 and October 2006.

Construction Bank had the weakest Hong Kong debut of the four, closing unchanged on Oct 27, 2005, while the other three jumped at least 13 percent on their first day.