Bank of China IPO Delayed
February 8th, 2006The China Economic Review reports (or, more precisely, relays the report) that:
Bank of China, the mainland’s second-largest lender, will delay its US$8 billion to US$10 billion planned IPO until as late as June after pressure from Beijing to offer shares in both the mainland and Hong Kong, the Standard of Hong Kong reported, citing sources familiar with the deal. Though the bank succeeded in heading off a simultaneous dual listing by promising to sell A-shares in Shanghai some time in the future, the intervention has thrown the listing off schedule. The H-share sale, expected to be one of the largest this year, was scheduled for the first quarter.
I wonder if pressure about an A-share listing is really the sole cause of the delay. Could the recent arrest of some Bank of China officials in Las Vegas be a factor? Big as the Bank of China is, theft of USD 500 million (the amount of plunder reported) seems “material.” Or perhaps other factors are at work. But pressure, apparently overcome, for a simultaneous A-share IPO doesn’t strike me as an adequate explanation.
It is noteworthy that BOC will apparently list only in Hong Kong. This follows the lead of China Construction Bank which raised about USD 9 billion in a HKEx-only IPO last year. While PRC banks may not be the gold standard in terms of financial metrics or transparency, if jumbo IPOs continue to bypass the U.S. the backlash against Sarbanes-Oxley will gather strength.
May 9th, 2006 at 2:36 am
Dear Walter:
I am a journalist in New York, wrirting a piece for Corporate Board Member magazine about Sarbanes-Oxley, etc. inhibiting foreign companies from listing on U.S. stock markets.
China is obviously an important part of this story, and I ws hoping to share some of your expertise, given my own patch is Russia. an we arrange a time to talk, or can you steer me to some other sources?
Many Thanks,
Craig Mellow