Industrial Bank of China IPO - Sells 1 Billion Sharesposted by MR WAVETHEORY at 1/21/2007 09:35:00 PM
Industrial Bank plans to sell 1 billion A shares at between 15 yuan and 15.98 yuan each to investors, the company said in a statement today. The sale would be the third biggest bank stock offering on the mainland, following Bank of China's 20 billion yuan offer of June 2006 and the Industrial & Commercial Bank of China's sale of 46.6 billion yuan last year.
Good for a 30% bump.
The relatively low pricing means Industrial Bank's shares are almost certain to surge on listing -- many analysts believe the stock may rise to 20 yuan on its debut.
But allocation? Probably slim. And it's not all that cheap.
Industrial Bank Co Ltd (SHA 601166) said it has set the price range for its planned listing in Shanghai at 15.00-15.98 yuan per share.
That translates to a price-to-earnings ratio of between 30.5 and 32.5 times the company's diluted 2005 earnings, the company said in a statement to the Shanghai Stock Exchange.
30 times earnings. Not exactly a steal. Not expensive either. I say buy it and flip it.
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