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BOC float clears first regulatory hurdle

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Watchdog approves inclusion of shareholdings of strategic investors in $54.6 billion public share offer

Bank of China, the mainland's second-largest lender, yesterday got approval from Hong Kong's listing watchdog to count a large parcel of pre-float shares already sold to strategic investors as part of its proposed $54.6 billion initial public offering in the city.

A source said the key approval was given at a preliminary meeting with the stock exchange's listing committee.

As one of the giant share sales of the year, BOC's offer has attracted overwhelming demand from Hong Kong tycoons and key international players even though it has not yet been launched.

Since last year the lender has brought in several strategic investors that have taken up a combined 20.74 per cent stake. They include a consortium led by Royal Bank of Scotland, the Singapore government investment arm Temasek Holdings, UBS, the Asian Development Bank and the National Social Security Fund.

Cheung Kong (Holdings) chairman Li Ka-shing, Henderson Land Development chairman Lee Shau-kee, New World Development chairman Cheng Yu-tung and many other tycoons are expected to snap up US$1 billion worth of BOC's shares in the offer.

The arrangers had indicated that the lender would earmark about US$1 billion worth of offer shares to about eight tycoons but the amount had yet to be finalised.

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