ABC Rumours 1.905 Yuan Issuing Price &Nbsp; 17, Beijing, Shanghai And Shenzhen Three Road Show

In June 9th, Agricultural Bank of China successfully passed the meeting. According to sources, ABC will begin its inquiry on the national road show on the 17 th of this month, the first stop in Beijing.

17 Beijing Roadshow

In June 9th, ABC successfully got the IPO approval of A shares.

According to the general listing process, ABC will be able to publish prospectus in June 10th and start the national road show. The focus of the spotlight is that the issue price will be determined with the result of road show and inquiry.

However, informed sources told reporters 9 days ago, ABC A shares roadshow time is 17 this month. "ABC will conduct roadshows in three places in Beijing, Shanghai and Shenzhen. The 17 and 18 days are the time of Beijing roadshow." So the bank's official prospectus will also be on the 17 day.

The news was also confirmed by insiders of the Agricultural Bank of China.

This person explained that this is not the ABC's process of postponing listing, but because of the statutory Dragon Boat Festival next week. "Roadshow stage is usually about a week, according to convention, it is unlikely that there will be three days of holiday break."

Even 17 days before the roadshow began, ABC listed on the stock market in July 15th. An industry insider close to the underwriter said that ABC had successfully communicated with the strategic placing objects, fund companies and some brokerages in the previous roadshow, and the official road show was no more than a passing. "A number of large fund companies have clearly indicated their purchasing intentions to ABC."

According to the regulations, the inquiry is divided into preliminary inquiry and cumulative bid inquiry. The issuer and the main underwriter determine the issue price range through a preliminary inquiry, and determine the issue price through the cumulative tender inquiry within the issue price interval.

Get the short time gap between the A shares and the road show, the main battleground of the AgBank preparation or the turn to H share. ABC will accept the Hongkong stock exchange's hearing on June 10th and publish H-share prospectus. If the result is successful, the Hongkong listing approval can be obtained that day. After approval, ABC and underwriters can start a series of international roadshow promotion.

"The H-share approval process is more flexible, or to fully cooperate with the A share listing arrangement, and the list of cornerstone investors of the ABC has been determined. There is no suspense in the success of this phase." The IPO is close to Underwriters.

1.905 yuan pricing is "nothing".

On the 9 day, ABC publicly stated that the preparatory work for issuing and listing the bank is progressing smoothly and is proceeding steadily according to the planned time schedule. "Considering the impact of various factors in the market, it is imperative for the Agricultural Bank to carry out its timetable."

It is worth worrying about how to make agricultural bank's issue price and whether it will break after listing.

The issue of pricing has always been the most reluctant topic for ABC. Pan Gongsheng, deputy governor of Agriculture Bank, said in an interview with the newspaper that the issue price will be considered comprehensively according to the roadshow, the company's intrinsic value and the overall state of the capital market.

However, the market is already impatient. On the 9 day, it spread again the pricing rumors. "The Agricultural Bank has a minimum market price of 1.5 times, which means that the lowest price of the bank is 1.905 yuan." In response, ABC related people responded to this newspaper -- "nonsense!"

An interview with industry analysts also pointed out that the price of 1.9 yuan for the Agricultural Bank, it is almost impossible. "Even if the market rate is 1.5 times true, it can not simply measure the issue price of Agricultural Bank of China by multiplying 1.5 times PB of net assets per share in 2009." He said.

In fact, the issue price calculation is more complicated. For the issue of new shares, the relationship between PB, stock market price and net assets per share is more closely linked. First of all, according to the industry practice, the net assets per share should be calculated according to the net assets per share after the issuance of the year, rather than the value before the issue. "The above 1.905 yuan pricing is calculated by 09 times the net assets per share multiplied by 1.5 times PB, so it is not accurate."

Secondly, the market rate is a dynamic value, which is related to the size of the issue, the net assets per share in 2009, the amount of the 2010 annual profit, the issue price, and the exercise of the excess allotment rights. "ABC's issue pricing is based on a reasonable prediction of the results of a combination of various factors, and taking into account the proportion of excess placement options, the results of market inquiries, there is a price space." The source pointed out.

Previously, a source close to the underwriter told reporters that the results of the Agricultural Bank's pre inquiry were 2.5-2.6 yuan, and the Agricultural Bank of China also tried to protect the issue price of not less than 2.5 yuan.

It is expected that the net assets of the bank will be around 1.7 yuan per share after the listing of the Agricultural Bank this year. If we consider whether the ABC is broken, it is not expected to make or exercise 10% of the excess allotment rights. The comprehensive calculation shows that the Agricultural Bank's issue price is 2.5-2.6 yuan, and the PB value is about 1.5-1.6 times.

ABC regards its absolute superiority in the county economy as one of its core highlights. Based on the rapid development of the county economy and the upgrading of the industrial structure, ABC believes that the demand for financial services has also been greatly improved.

At present, the penetration of financial services in counties is still relatively low. In 2008, the proportion of county loans accounted for 40.2% of the county's gross domestic product, while the proportion of urban areas reached 171.5%. Because the degree of urbanization in China is quite different in different regions, the county financial market in the East has basically taken shape, and the central and western regions need further development.

However, when the advantages of ABC can be reflected, it remains to be verified by time.