AgBank raises $19.23b in IPO

The Agricultural Bank of China's initial public offering has raised more than $19 billion in what could turn out to be the largest IPO ever.

A potential investor collects application forms and a Agricultural Bank of China prospectus during its initial public offering (IPO) in Hong Kong June 30, 2010. [Agencies]

The last of China's big four State-owned banks to go public, AgBank is selling 25.41 billion shares in Hong Kong and 22.24 billion shares in Shanghai. Based on Tuesday's pricing, the rural lender would raise about $19.23 billion, according to a person familiar with the deal.

The person requested anonymity because details of the IPO have not yet been released.

If underwriters buy up about $2.89 billion more shares to sell to investors, the dual-listing deal could raise $22.12 billion -- the most funds ever for an IPO. Industrial and Commercial Bank of China raised $21.9 billion in its October 2006 IPO.

In Hong Kong, shares priced for HK$3.20 each (41 cents), the midpoint of the expected range, the person said. In Shanghai, shares priced for 2.68 yuan (40 cents), the top of the expected range, the person added.

Proceeds would total HK$81.31 billion ($10.44 billion) in Hong Kong and 59.58 billion yuan ($8.79 billion) in Shanghai.

The bank said in its Hong Kong prospectus that major foreign investors in the Hong Kong offering include Qatar Investment Authority ($2.8 billion), Kuwait Investment Authority ($800 million), Britain's Standard Chartered Bank ($500 million), Dutch bank Radobank Nederland ($250 million), Australia's Seven Group Holdings Ltd ($250 million) and Singapore's Temasek Holdings ($200 million).