Next Week, The Agricultural Bank Finalized The Battle List &Nbsp, Priced At Less Than 2.5 Yuan.

The two stock markets continued to suffer from weak shocks and light trading in recent days. The good trend has not yet appeared, which may become the biggest obstacle to the IPO valuation of the Agricultural Bank.

It is not optimistic that the initial pricing of the 2.5 yuan roadshow "guess" or be lowered again.

Reporters recently learned that in June 2nd, ABC executives rushed to many other cities outside the country to negotiate with potential investors, implement investment and equity issues, and start H-share initial enquiries.

This is followed by a low-key overseas roadshow in early May, and the top executives of Agricultural Bank of China once again faced "confrontation" with international buyers. It is expected that the negotiations will finalize a detailed list of cornerstone investors and specific investment plans for ABC IPO.

A source from an agricultural bank underwriter said that the cornerstone investors of H-share will be finalized next Monday and Tuesday.

　　定價再調低?

From 2 times PB to 1.8 times PB, and then to the preliminary pricing of the "1.6 times PB, 2.5 yuan" roadshow given by the analyst's recommendation recently, the market is constantly challenging the ABC's bottom line of psychological price.

If the two tier market can not turn better, what is the bargaining power of ABC's remaining chips?

In fact, it is too early to conclude the issue price of Agricultural Bank of China, because the key factor determining its final pricing is the result of the roadshow inquiry after the meeting and the situation of the capital market at that time.

Obviously, the latter is more uncertain.

A Hongkong investment bank said that the current domestic and foreign capital market situation is not good, not the best time to issue agricultural bank, which greatly affected the bargaining power of ABC IPO.

In June 2nd, Hong Kong stocks advanced at a low level. At the close, the Hang Seng index was 19471.80 points, down 25.15 points, or 0.13%, and showed a downward trend for third consecutive days.

These people judged that the short run of Hong Kong stocks was more volatile in the short term, and in the 1 years away from the time window for the fastest release of ABC in July, there was no sign of market reversal in the short term, and the market outlook was not very optimistic about the price of ABC.

"At present, the listed banks are almost at the lowest level of net market since listing. In addition, they are affected by the European debt crisis, and tight financial institutions in Europe and the United States, their willingness to invest and their investment ability have greatly affected their appetite for the Agricultural Bank."

He said.

The stock market is sluggish, and there are many investors to choose from in the market. It is precisely bargaining chips for the Agricultural Bank's institutional buyers.

Previously, the Agricultural Bank's underwriter analyst team issued a report on the agency's recommendation, which has given the Agricultural Bank's "1.6 times PB, 2.5 yuan" reference price, which is regarded as the bottom line of the ABC price. However, a source from an agricultural bank underwriter said, "the price of the cornerstone investor is less than 2.5 yuan."

　　基石投資者待出

On the eve of the "meeting", ABC is finally finalizing the H-share cornerstone investors.

Cornerstone investors list, the size of the lock up period, investment plans and so on the dust settled, or for the Agricultural Bank's external factors are not optimistic about the IPO prospects, confidence.

Reporters learned in June 2nd that Agricultural Bank of China started to go to many cities in Hongkong, Singapore, Europe and the United States on the same day.

Prior to the beginning of May, ABC has concentrated on a round of overseas roadshow, and this meeting with international buyers will finalize specific investment and partnership agreements.

According to the Underwriters, the list of cornerstone investors will be finalized next Monday and Tuesday.

The detailed list and investment plan will appear in the prospectus.

The source also said that at present, Singapore Government Investment Company (GIC) and the Middle East sovereign wealth fund Kuwait Investment Bureau has decided to become a bank of agriculture, which has invested at least $1 billion.

After the H-share pre inquiry and the finalized cornerstone investors, ABC will meet with domestic institutional investors for pre inquiry of A shares in mid 6.

According to the above investment bank sources, ABC may make certain adjustments to the ratio of A and H raised funds.

"ABC plans to increase the proportion of A shares, it is estimated that the ratio of 1:1 to the two places, and in the previous plan, Hong Kong stocks are higher than A shares."

He said.

　　高儲蓄率賣點

A mainland brokerage firm said that the valuation of ABC might be between the industry, the Construction Bank and the Bank of China, with a slight discount of about 15% based on the dynamic market rate at that time.

He said that if the next two levels of market go well, ABC IPO valuation has room for improvement.

ABC must vigorously promote the "selling point" and give potential investors a shot in the dark when the market is not good enough.

The market's concern about the value of Agricultural Bank's investment lies mainly in its weaker management and profitability than other listed banks, especially in the reform of the Ministry of agriculture, rural areas and farmers.

The "selling point" can be found from the business location of the Agricultural Bank throughout the county, as well as the positioning of the three rural businesses, preferential policies and macroeconomic orientation, or benefit from the coordinated development of China's urban and rural economy in the future.

Compared with other listed banks, ABC has the advantage of the most widely distributed network resources and capital cost advantages in China.

"Agricultural bank accounts for more than 60% of the savings accounts, the highest in the country, and the interest rate of deposits has obvious advantages.

This has great competitive advantage under the current situation of tight credit funds in banking industry.

The broker said.

According to the data obtained by reporters, ABC's net profit in 2009 was about 65 billion yuan, up by more than 26% over the same period last year, faster than that of ICBC and China Construction Bank.

At present, ABC's capital adequacy ratio exceeds 10%, the provision coverage rate reaches more than 105%, and the non-performing loan ratio is below 3%.