Life of Guangzhou - Thousands People Banks for ICBC Offering

HONG KONG: Thousands of people across Hong Kong flocked to banks yesterday in a rush to buy into what could be the world's largest initial public offering (IPO) from Industrial and Commercial Bank of China (ICBC).

By early morning, over two hundred people were queuing hours before the banks' opening in the industrial Kwun Tong area in Kowloon district on the first day of the float's retail launch.

People line up outside a bank to get application forms and prospectus of ICBC. [ REUTERS ]

Three million application forms have been published for the IPO.

“This is the focus of the world. I cannot miss it. Everyone is applying for it. You can't possibly lose money here. It's like (global banking giant) HSBC, you never lose if you put money in that bank,” said 45-year-old architect Michael Cheung.

China's sizzling economic growth and the overhaul of its banking sector have fuelled a huge international appetite for ICBC, which on Oct 27 will become the latest in a recent crop of Chinese lenders to list on overseas exchanges.

The bank said yesterday it had priced its A-share IPO at a range of 2.60–3.12 yuan (33–39 US cents) a share.

ICBC plans to sell 13 billion A-shares in Shanghai, increasing to 14.95 billion if an over-allotment option is exercised. The institutional portion of the offer began yesterday and the retail portion will take place on Thursday.

The bank is raising around USbil through a simultaneous Hong Kong and Shanghai listing that is expected to be the world's largest stock offering. It has priced its H-share sale in Hong Kong at HK.56 to HK.07 per share.

ICBC chairman Jiang Jianqing said he was keen to further develop the bank's fee-based businesses, such as personal wealth management, remittance services and credit cards.

“We will maintain steady growth of our loan business, enhance profitability from investment and trading activities, and will rapidly grow fee-based business,” Jiang told reporters via a video link in the United States, where he was on an IPO marketing roadshow.