Singapore’s state investment fund Temasek plans to invest up to $300 million in the Agricultural Bank of China, ahead of its roughly $20 billion IPO, a source with direct knowledge of the matter said on Saturday.
Temasek’s commitment to China’s third largest bank is a positive step for the offering, though it is less than the $1 billion that AgBank’s underwriters are hoping to get from Middle East and Asian sovereign wealth fund cornerstone investors.
So-called cornerstone investors are a key layer of financial backing for an IPO. AgBank’s Shanghai-Hong Kong listing will be the world’s largest ever IPO if it exceeds $21.9 billion.
Temasek declined to comment. AgBank could not immediately be reached. The source was not authorized to speak on the record about the deal.
Reuters earlier reported that Temasek, and sovereign funds from Kuwait and Qatar were expected to sign on to AgBank’s offering.
The Beijing-based bank, founded in 1951 by Mao Zedong as the rural unit of the central bank, is still known a customer base spread across China’s far-flung parts, though it does a have a major presence of most of the country’s major cities.
AgBank today boasts nearly 24,000 branches and employs more than 441,000 people, eclipsing Industrial and Commercial Bank of China (1398.HK) and China Construction Bank (0939.HK), the world’s two biggest banks by market value.
If AgBank raises more than the $23 billion it hopes, it will be the world’s largest ever IPO, beating out ICBC’s $21.9 billion dual listing in 2006.
AgBank is China’s third largest bank, with $1.4 trillion in assets. It also has 320 million customers, a base larger than the population of the United States.
The Beijing-based company is run by Xiang Junbo, 53, a scriptwriter and war hero, who previously served at top posts in China’s central bank and National Audit Office.
Cornerstone investors agree to buy into an IPO before the pre-marketing period, allowing the underwriters to show potential institutional investors that the deal already has solid financial backing. In return, cornerstones receive preferential shares.
The sources say the IPO is expected to price on July 7, with a debut the following Thursday or Friday.
Normally, cornerstone investors are locked-up for 6 months, but with the scale of AgBank’s IPO, underwriters are pushing for a one-year commitment, which will help add confidence to institutions seeking longer term returns from the offering.
The bank’s top executives and Beijing officials are asking the underwriters to ensure that the stock trades up around 10 percent on its debut, important less for long term stability than a prideful opening day triumph for a high-profile Chinese institution.
By Saeed Azhar
Tags: banks, central bank, China, economy, financial, financial markets, financial system, investors, money
[...] Temasek to invest up to $300 million in AgBank IPO: source | Money … [...]
[...] Temasek to invest up to $300 million in AgBank IPO: source | Money … [...]
Buy:Female Cialis.Buspar.Lipothin.Nymphomax.Advair.Amoxicillin.Aricept.Ventolin.Benicar.Seroquel.Cozaar.Lipitor.SleepWell.Zocor.Zetia.Female Pink Viagra.Acomplia.Wellbutrin SR.Lasix.Prozac….
…
It is a great point!…
…
Really inspiring article, Thanks !…
…
Extremely inspiring write-up, Thanks !…
…
KVF Hi, in which did you get this information can you please assistance this with some proof or you may possibly say some great reference as I and other people will truly value. This info is truly excellent and I will say will usually be useful if we a…
…
FGJ Ok. I think you are proper! -GW….
…
This really is a good weblog post and I defer to you what you could have said below. I’ve currently subscribed to your RSS feed in Firefox and will be your typical reader. Thanks for the time in writing the submit….
…
JLC Thanks for your well-thought post. I’m actually at work appropriate now! So I must go off without reading through all I’d like. But, I put your blog on my RSS feed to ensure I can read additional. -LC….
…
QDU Positive glad that I navigated to your page by accident. I’ll be subscribing for a feed in order that I can get the newest updates. Enjoy all the information right here -RQ….
…
JJL What a excellent resource! -MJ….
…
ZRW It is a good place! -DO….
…
Below is definitely an area that may possibly be of help to you!…
…
Hi, many thanks so a lot for these ideas!…
…
Yes, thank for your information a million! Should discover anyone organizing Tea Party. I wants to participate in organizing….
…
Hi there may possibly I reference some from the insight right here in this website if I reference you having a link back again on your web page?…
…
BUY FASHION. TOP BRANDS: GUCCI, DOLCE&GABBANA, BURBERRY, DIESEL, ICEBERG, ROBERTO CAVALLI, EMPORIO ARMANI, VERSACE…
…
Hi! Your publish rocks and is usually a excellent read!…
…
This submit may well be mentioned on Twitter by someone. definitely?…
…
Very good brief and this publish helped me alot. Say thank you I seeking your details….
…
What a excellent resource!…
…
i actually like your world wide web web page. Its quite informative. Goodbye!…
…
This website is fantastic. How did you appear up witht he notion?…
…
This is definately one with the best blogs I’ve sen in ages on the net. Preserve up the good posts….
…
As typical this was a thoughtful article today. You make me want to keep coming back again and forwarding it my followers…….
…
wonderful advice and discussing,I’ll get this wonderful for me .thank you!…
…
Your stage is valueble for me. Thanks!…
…
i really like your web website. Its really informative. Goodbye!…
…
As typical this was a thoughtful publish these days. You make me want to continue to keep coming back and forwarding it my followers…….
…
Hi there may well I reference some with the insight the following in this web site if I reference you with a link back in your site?…
…
Hello there, I should say it really is a clever posting. I’ll certainly be looking in on this blog site once more quickly….
…
Funny, I used to be discussing this thing with my older sister the other day, now I will have a single more argument in my hand when it’ll appear to confrontation as soon as once more….
…
That is some inspirational things. In no way knew that ideas could possibly be this varied. Thanks for all of the enthusiasm to offer you such valuable data here….
…
Sweet publish….
…
What a wonderful resource!…
…
Hi there might I reference some from the insight the following in this website if I reference you having a link back for a site?…
…
Really cool! I assist your view!…
…
Thanks! it’s useful to me!…
…
wonderful guidance and sharing,I’ll get this fantastic for me .thank you!…
…
Outstanding place……
…
This is a excellent web site post and I defer for you what you’ve stated below. I have previously subscribed on your RSS feed in Firefox and is going to be your normal reader. Thanks for the time in writing the post….
I would like to say “wow” what a inspiring post. This is really great. Keep doing what you’re doing!!…
Intriguing post. I have been searching for some good resources for solar panels and discovered your blog. Planning to bookmark this one!…
Glucose Meters…
[...]a healthy diet plays a big part into preventing diabetes[...]…
Dark Under Eye Cream…
[...]work better than surgery in some cases[...]…
iPad eBooks…
[...]iPad eBooks allow you to use your iPad as many use the Kindle[...]…
Free Glucose Monitor…
[...]through the Diabetic Connect program[...]…
Tks…
I really need it,thank you very much!!!…
Hey {this is a|this can be a|it is a} {real|actual} cool {website|web site}…
Hey I found this web site to be actually fascinating! Bookmarked!…
Great Site……
[...]check this out as this contains important information about[...]…