ABC Is Popular In The Middle East And &Nbsp Is The Most Active In The Middle East; IPO Adopts Green Shoe Mechanism.

In early May, Pan Gongsheng, vice president of the Agricultural Bank of China, led a team to Southeast Asia, the Middle East and Europe to communicate with sovereign funds and institutional investors. Investors were very interested in subscriptions to agricultural banks. Among them, investors in the Middle East were eager to express their strong desire to buy ABC shares.

According to a reporter familiar with the China times, some countries and institutional investors in the Middle East are full of expectations for the purchase of ABC shares.

In addition, this newspaper only learned that in early June, ABC will sign a strategic cooperation agreement with Rabobank, Holland, and the two sides will carry out strategic cooperation.

Market rumors that ABC will be listed in the three quarter of this year in the form of "A+H" in Hongkong and the mainland, and adopt the "green shoe mechanism".

Overseas institutions seize last opportunity to compete with agriculture bank

When he heard about the ABC's meeting with institutional investors in London, a fund company manager walked from Switzerland to London with shoulder bags. In London and Southeast Asia, such institutional investors are everywhere.

Singapore's DBS bank, Temasek and Singapore Investment bureaus have expressed strong interest in ABC, and investors in Hongkong are confident about the prospects of ABC's listing.

The most generous player in ABC is the Middle East countries. During the visit to China, a government leader of the Middle East met with the top executives of the Agricultural Bank several times. He said he could buy $10 billion of shares and said that once the subscription was successful, the government would hold it for a long time.

Some institutional investors in the UAE regret not having bought the shares of ICBC for many years. This time, they did not want to give up the chance to participate in bidding for the last state-owned commercial bank in China. The top executives of the UAE came to China for 6 visits with the Agricultural Bank.

The people familiar with the matter analyzed the reasons why the Middle East institutions have strong interest in Agricultural Bank to the China Times reporter. There are four main reasons.

First, the Middle East countries are rich. Although the financial crisis has a serious impact on the world economy, oil prices remain high, and they are among the regions with the largest US dollar holdings. Second, the Middle East countries have invested heavily in the US and Europe. After the financial crisis, the losses have been serious. On the contrary, their investment in China has not been damaged but doubled. Third, the Middle East countries are optimistic about China's economic prospects. Fourth, these countries are very optimistic about the prospects of ABC, and think that it is a large commercial bank that occupies a leading position in the two markets in both urban and rural areas, and has great potential for development.

Price competition

The analyst who participated in the Agricultural Bank promotion conference revealed some questions about the pricing of ABC, and answered some of the media's doubts.

This person first answered the question of timetable for listing, and ABC did not try to push the listing process forward, nor did it postpone the listing because of market volatility. This newspaper learned that the time window for agricultural bank listing is in the three quarter. The analyst said that the market volatility had little impact on the bank, and "at the moment, it could also be on the spot." Of course, the best is around 3000. " He was not worried that ABC could not sell, or could not sell a good price.

The analyst's confidence is mainly due to the positive feedback from ABC and overseas institutions. These overseas institutions believe that this is the last chance to share the achievements of China's banking reform. ABC's asset quality is better than its imagination.

Some investors believe that the structure of agricultural bank loans is reasonable, and the risk industries such as real estate, steel, cement and other risk industries are relatively small. ABC's retail network is huge, covering urban and rural areas, and its county banking advantages are unmatched by other banks.

Pan Gongsheng once said: "the scale of issuing, issuing time, and issuing proportion of the two banks are still in the process of research. The issue price should be considered comprehensively according to the roadshow, the company's intrinsic value, growth, market supply and demand, and the overall situation of the capital market.

As for the analysis, some fund management companies are unable to participate in the A share IPO subscription of Agricultural Bank of China due to their fund custody in Agricultural Bank of China. The scale of the fund is 300 billion yuan.
 
"The fund of ABC IPO has little impact on the purchase demand of ABC online, less than 3%." The analysts said ICBC, China Construction Bank and Bank of China A shares also faced the same problem. Their funds for absences were more than those of ABC, but the three major banks were all over subscribed. Among them, ICBC, China Construction Bank and Bank of China were 17.8 times, 23.6 times and 35.3 times oversubscribed respectively, respectively, in the IPO.

According to the official website of the bank, the bank is an international financial service provider based on the cooperative system. Headquartered in Amsterdam, its business in Holland is mainly focused on providing full financial services and providing food and agricultural services in other countries and regions of the world. The bank, which has 59 thousand employees, provides services to 9 million 500 thousand customers from 48 countries. The bank has 147 branches in Holland. The bank has established 624 branches in 48 countries in Europe, North America, Asia and South America.

In the first tier capital market, the company is the top 25 financial institutions in the world. The world's leading rating agencies, S & P, Moodie and AAA, have been keeping the credit rating of the bank for many years for the highest level.

The bank has a long tradition of agriculture. Its predecessor was two independent cooperative banks: Raiffeisen-Bank and Boerenleenbank, and the two decided to help each other in 1898. In 1972, two cooperative banks were merged into the Bank of La Po, and the name of Rabo was taken from the first two letters Ra and Bo of the two banks.

The "green shoe mechanism" refers to a company whose initial size is above 400 million shares according to the "securities issuance and underwriting management measures" promulgated by the China Securities Regulatory Commission in 2006. It can allot shares to strategic investors and adopt an over quota option mechanism. The mechanism can stabilize the share price trend after the listing of large cap stocks and prevent the ups and downs of share prices.

ICBC issued a green shoe mechanism in 2006 at IPO.