By confirming that it intends to sell 17% share in itself, the biggest bank of China, ICBC has ended all rumors that originated about its ambitions.
ICBC (Industrial & Commercial Banking of China) is scheduled to start its pre-marketing this week in Hong Kong after it received approvals from city exchange last week. Valued at around $21 billion, it is all set to become the biggest IPO (initial public offering) in the world to date. ICBC has said that it would sell 3/4th of its shares in Hong Kong and rest would be sold in Shanghai.
"Strong economic growth and development of financial markets in China have resulted in rapid growth of ICBC luring foreign markets", said an analyst at RNCOS. ICBC forecasts at least $6 billion in net profits compared to $4.7 billion last year.
As per Shang Fulin, China Securities Regulatory Commission head, China's leading banks' IPOs are focused towards becoming global leaders rather than raising funds. Bank of China, China Merchants Bank, Bank of Communications & China Construction bank have raised an amount of $25 billion since 2005 in Hong Kong.
Established in 1984, ICBC was formed to provide lending and deposit services to state manufacturer. It has around 21,000 branches now, 150 million consumers and 360,000 employees.
Among the top ICBC investors, oil-rich nation Kuwait will invest $720 million in shares and will be its biggest single subscriber.
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