April 27th, 2010 | Caixin The sooner, the better is now the motto for ABC's IPO schedule
Agricultural Bank of China may move its listing from the third quarter of this year to July, signaling the acceleration of the long-awaited initial public offering.
A source familiar with the matter said that ABC, one of the four largest state-owned banks, wants to go public as soon as possible.
Sources say the bank aims to raise about US$ 30 million, higher than the Industrial and Commercial Bank of China’s US$ 1.91 billion in October 2006.
On April 14, ABC selected nine investment banks and securities firms as its underwriters for its upcoming listing in Hong Kong and Shanghai.
China International Capital Corp. is the lead underwriter for the bank’s Hong Kong and Shanghai listings. Goldman Sachs, Morgan Stanley, Deutsche Bank and Macquarie are ABC’s H-share underwriters. Citic Securities and China Galaxy Securities and Guotai Junan Securities also won the mandate to underwrite the A-share listing.
China’s banking and securities regulators have approved the bank’s application to go public. Currently, Central Huijin and the Ministry of Finance each have a 50 percent stake in the bank.
Over 800 million yuan of non-performing assets will be moved to a separate account under the joint management of the finance ministry and the bank. The bad loans will be offset by profits earned after the planned listing. ABC’s major assets are concentrated in cities, not much different from the three other banks which were already listed.