An institutional investor tapped the equity market yesterday to sell its entire stake in China Construction Bank Corp for up to HK$2.9 billion through a secondary share offering, market sources said. The unidentified seller hired investment banks JP Morgan and Deutsche Bank to help offer 408.495 million old Construction Bank shares at HK$7.05 to HK$7.10 each, which represent a 1.8 per cent to 2.5 per cent discount to the lender's closing price of HK$7.23 yesterday, according to a sales note sent to fund managers. The offering was equal to 0.18 per cent of the bank's share capital. 'The deal size is not too big compared with the huge market value of CCB. The offer size just equals 1.2 days of its recent daily turnover and should be easily absorbed by high liquidity in the market,' said a fund manager who joined the share sale. 'Nevertheless, there is an overhang, as two strategic investors - Temasek and Bank of America - will be free to offload their stakes in CCB in October.' Analysts said Temasek Holdings, which holds 5.99 per cent of Construction Bank, could be the likely seller in yesterday's deal. 'Temasek placed shares at a similar size and price level in the market last year,' said Ivan Li Sing-yeung, an analyst at Kim Eng Securities. 'Other investors such as Bank of America are still restricted by the lock-up period that expires in October.' As a strategic investor, most of the Construction Bank shares held by Temasek had a lock-up period, but the investor was already allowed to sell up to 4.95 billion shares after August 29 last year. Bank of America will be able to sell its 9 per cent stake as early as October. A Construction Bank spokesman said he was not aware of the proposed share placement. The stock gained 0.56 per cent yesterday. It has bounced back more than 50 per cent from its trough in mid-March.