Chief Correspondent, Hong Kong
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Jun 24, 2010

AgBank seeks $11.4 bln in Hong Kong leg of IPO

HONG KONG (Reuters) – Agricultural Bank of China Ltd plans to raise as much as $11.4 billion through the Hong Kong portion of its initial public offering, sources close to the deal said, setting a price range that keeps the lender on track for the largest IPO on record.

AgBank, which kicks off a formal marketing roadshow on Thursday, set a proposed price range of HK$2.88-HK$3.48 a share for the Hong Kong offering, the sources said late on Wednesday.

Jun 23, 2010

Handling China mega-IPO brings prestige … and pain

BEIJING/HONG KONG (Reuters) – Four years ago, Pan Gongsheng was board secretary at Industrial and Commercial Bank of China and steered what is now the world’s most valuable bank through its $21.9 billion IPO, the largest ever.

His style then was to subject the army of bankers piecing the deal together to a strict regimen of daily report cards, grading everything from attendance to typing errors in the offer prospectus – all of which were reported back to government officials in Beijing.

Jun 21, 2010

MidEast funds take big bite of AgBank IPO

HONG KONG (Reuters) – The Kuwait Investment Authority has invested $800 million in Agricultural Bank of China, two sources said on Monday, giving Middle East funds a big slice of AgBank’s likely record $23 billion IPO.

The same sources confirmed a weekend report that the Qatar Investment Authority agreed to invest $2.8 billion in AgBank, a bigger-than-expected sum that gets underwriters closer to their goal of raising around $6 billion through cornerstone investors in the planned Hong Kong offering.

Jun 21, 2010

Kuwait to invest $800 million in AgBank IPO: sources

HONG KONG (Reuters) – Agricultural Bank of China ABC.UL has received an $800 million investment from the Kuwait Investment Authority, sources said on Monday, in a deal that means Middle East funds will take up more than half of Hong Kong’s cornerstone portion of AgBank’s $23 billion IPO.

The sources confirmed a report issued late on Sunday that the Qatar Investment Authority had agreed to invest $2.8 billion in AgBank, a greater-than-expected amount that gets underwriters closer to its goal of raising around $6 billion through cornerstone investors.

Jun 18, 2010

AgBank woos IPO investors; MidEast eyes $2 bln stake

HONG KONG (Reuters) – Two Middle East wealth funds may each buy $1 billion worth of stock in Agricultural Bank of China’s upcoming record IPO, among seven key investors considering buying stakes, sources said on Friday.

AgBank, with assets of $1.4 trillion — more than the GDP of Canada — had hoped to raise around $30 billion from its dual listing in Hong Kong and Shanghai as it looks to shore up its capital base after a lending splurge by Chinese banks last year.

Jun 18, 2010

AgBank signs investors, as MidEast eyes $2 bln stake

HONG KONG, June 18 (Reuters) – Agricultural Bank of China has
reached an agreement with a group of seven investors ahead of its
massive initial public offering, sources said on Friday, with two
funds from the Middle East considering a stake that could exceed
$2 billion.

The agreements are a key step for the state-owned lender, as
the more money it can collar before the Shanghai-Hong Kong
listing, the easier it will be to raise its record-setting goal.

Jun 14, 2010

China’s AgBank seeks record $23 bln IPO – documents

HONG KONG (Reuters) – The Agricultural Bank of China is seeking to raise more than $23 billion through a dual Hong Kong and Shanghai listing, according to documents on Monday, putting it on course for the world’s biggest IPO.

The initial public offering by AgBank, founded by Mao Zedong in the 1950s as the central bank’s rural arm, had previously been touted as high as $30 billion, but has been scaled back as China’s stock markets have dropped by more than a fifth this year and global markets have been spooked by a euro zone debt crisis.

Jun 14, 2010

China’s AgBank seeks record $23 billion IPO

HONG KONG (Reuters) – The Agricultural Bank of China ABC.UL is seeking to raise more than $23 billion through a dual Hong Kong and Shanghai listing, according to documents on Monday, putting it on course for the world’s biggest IPO.

The initial public offering by AgBank, founded by Mao Zedong in the 1950s as the central bank’s rural arm, had previously been touted as high as $30 billion, but has been scaled back as China’s stock markets have dropped by more than a fifth this year and global markets have been spooked by a euro zone debt crisis.

Jun 11, 2010

StanChart, BBVA eye Indonesia bank stake -sources

HONG KONG, June 11 (Reuters) – Standard Chartered (STAN.L: Quote, Profile, Research)
and Spain’s BBVA (BBVA.MC: Quote, Profile, Research) are among the banks showing interest
in the sale of the Gunawan family’s $1.4 billion stake in
Indonesia’s Panin Bank (PNBN.JK: Quote, Profile, Research), sources with direct knowledge
of the deal told Reuters.

The 46 percent stake is on the block with UBS running the
auction, sources have previously told Reuters.

Jun 10, 2010

AgBank seeks 1-year, $1 billion lock-ups from Qatar, Temasek

HONG KONG (Reuters) – The Agricultural Bank of China ABC.UL is close to signing up a list of cornerstone investors, including Temasek TEM.UL and Qatar’s sovereign fund, for its roughly $20 billion Hong Kong and Shanghai IPO, sources involved with the deal said on Thursday, with the bank hoping to get a one year lock-up commitment.

Cornerstone investors for AgBank’s Hong Kong-listed H-share offering are expected to invest between $100 million and $1 billion each, the sources said. Interested sovereign funds, which also include Kuwait and China Investment Corp, are in talks to buy up shares worth closer to the $1 billion mark.

    • About Michael

      "In June 2009, Michael Flaherty became a Chief Correspondent for Reuters News, leading a team of journalists who cover investment banking, mergers & acquisitions, private equity and hedge funds, equity capital markets, natural resources and property across Asia. He arrived in Hong Kong in Feb. 2008 as Reuters' Asia Financial Services correspondent, covering the investment banks and M&A. Flaherty was hired by Reuters in New York in Dec. 2003. He was voted Reuters Journalist of the Year for his 2007 coverage of the U.S. private equity boom and bust. He started at Reuters with the consumer group covering office retailers ..."
      Joined Reuters:
      Dec. 1, 2003
      Awards:
      Peninsula Press Club, 2002, Reuters Journalist of the Year, 2007, M&A International, 2007
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