Category: Money tips Release Date: 2007-04-20
China Merchants Bank H shares "perfect offering" a little bit sorry: As the syndicate did not advance to the Hong Kong Stock Exchange for a favorable allocation of small subscribers, 540,000 individual investors can not all single-handedly, but the Saudi prince arvagh Rucker, etc. will be allocated more shares of large.
China Merchants Bank on September 18 notice published on the HKEx announced the pricing of the above limit 8.55 Hong Kong dollars, but the H shares subscriptions and distribution methods and the signature alone, to wait until the eve of September 21 before announcing the listing.
The China Merchants Bank IPO was 266 times oversubscribed, while the freezing of funds 250 billion Hong Kong dollars. Underwriting syndicate sources said September 18, there are several large informed of the allocation of large amount of subscription access to more shares after the September 13 deadline for subscription that day, big hands the cash subscription, so oversubscribed multiple surge.
These include the large Saudi Prince Talal (Alwaleed bin Talal). Sources said Talal H shares in China Merchants Bank received only a small amount in the International Placing Shares, to spend the cash in a public subscription phase "snapped." Talal Bank shares had been subscribed, but also pledged to invest two billion U.S. dollars, shares of China Industrial and Commercial Bank of China later in the prospectus.
Hong Kong shares in accordance with the allocation rules, Group A (500 yuan) and Group B (500 million yuan) application, the allocation of new shares in half, if you want to adjust more shares to the Group A of the applicants are required to obtain the HKEx approval.
Underwriting syndicate source said Bank of Hong Kong due to stroke is only one branch, known less than the Bank of China, there is no basis for a large number of depositors, the original underwriting group to determine the number of applications would not be much, it did not apply for exemption from the prospectus prior to the HKEx , to the late stage of the prospectus to the HKEx has been raised too late.
Over the past MTR Corporation (0066.HK) listed before the application for exemption to the HKEx to allow flexibility in the allocation of group A and B shares, and approved, the exemption also disclosed in the prospectus. Metro received more than 601.8 thousand people at that time the application is 99.89% Group A, Group B is only 677 copies, so the sponsor will be fully back of shares allocated to Group A, Group B even had to leave 94% of the shares allocated to Group A eventually achieve each hand. Because the number of issued shares of Bank of China is more, after the Group A at the back even if only half of the shares, there are 1.278 billion shares, sufficient to 945,000 Group A small investment for at least the allocation of each hand (1000 shares).
China Merchants Bank is the second issue 2.2 billion shares H shares, had only 5% of allocated part of a public offering, but some of the required subscription amount of public offerings of more than 100 times, will be back to 20% of new shares to be part of a public offering, or 4.4 million shares . The 540,000 applications received, about 50 million is 5 million yuan to subscribe for the following Group A applicants, this part of the present, only 220 million shares, the shares of 500 shares first-hand, so not the allocation of each hand.
However, syndicate will try to allocate more shares to only the small investors to subscribe for one or two hands, this would make it through the "margin" (to borrow to buy shares in a brokerage financial services), but less than 5 million yuan to subscribe for the retail, the success rate lower, after China Merchants Bank listed share price to go up into one or more of these "margin" to rid themselves of retail loss.
