Chinese bank makes €15bn in record IPO

Industrial & Commercial Bank of China (ICBC)  raised €15 billion after pricing its IPO at the top of its indicated range …

Industrial & Commercial Bank of China (ICBC)  raised €15 billion after pricing its IPO at the top of its indicated range in the world's largest share sale, sources said today.

The offering, which will be the first simultaneous listing in Hong Kong and mainland China, surpasses Japan's NTT Mobile Communications, which raised €14.5 billion in 1998, as the largest IPO.

The Beijing-based lender sold 35.39 billion H-shares at 3.07 Hong Kong dollars (31 cent) a share, compared with its price range of 2.56-3.07 Hong Kong dollars per share.

It sold 13 billion domestic A-shares at the top of their range, which is based on the Hong Kong price and is subject to currency fluctuations.

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A source said the domestic shares had been priced at 3.11 yuan (31 cent), but another source said the A shares were priced at 3.12 yuan.

The IPO shares cumulatively represent 14.8 per cent of its enlarged share capital. The issue price represents 2.23 times ICBC's 2006 book value and 19.2 times expected earnings per share.

ICBC shares are set to begin trading on October 27th.