Bank of China's Record-Breaking IPO Sees Revised Share Sale

Bank of China has exercised its option to increase the size of its initial public offering (IPO) by 15% to US$11.2 billion, making it the world's fourth-largest IPO. The mainland's second-largest lender aims to raise funds through the sale of additional shares, which will be sold at the offering price of $2.95. The revised share sale has been met with high demand from both retail and institutional investors, with the BOC offering being heavily oversubscribed.

Key Takeaways:

• Bank of China's revised share sale will see the sale of 3.83 billion additional shares, taking the total share capital sold to investors to 11.35%.
• The $2.95 offering price is 21.18% higher than the bank's IPO price, with shares trading at $3.525 after falling 1.39% due to market tracking.
• The BOC IPO is expected to be surpassed by the Industrial and Commercial Bank of China's initial share sale, which may reach the market as early as September, with a target of raising at least $12 billion.
• BOC's shares have been included in several market indices, including the FTSE/Xinhua China 25 Index and the MSCI China Index, with many investors expecting the bank to be added to the Hang Seng Index next year.
• The A-share offering, set for this year, will be the first major domestic offering after a year-long moratorium imposed by the central government.

Statistics:

• Initial public offering (IPO) size: US$11.2 billion
• Number of additional shares sold: 3.83 billion
• Offering price: $2.95
• Total share capital sold to investors: 11.35%
• Bank of China's initial IPO price: (not listed in the original text, but 21.18% lower than $2.95)
• Total number of shares traded: (not listed in the original text)

Sources:

• "Bank of China ups IPO size to $11.2bn" (Reuters)
• "Bank of China to raise up to $20 billion in A-share sale" (Bloomberg)