Money

ABC clears hearing in run-up to IPO

(Agencies)
Updated: 2010-05-26 10:45

HONG KONG/BEIJING - Agricultural Bank of China (ABC) cleared a preliminary hearing with the Chinese securities regulator in the run-up to its planned $30 billion IPO in?Shanghai and Hong Kong, local media reported on Wednesday.

The bank, whose initial public offering later this year is expected to be the largest of all time, went before the China Securities Regulatory Commission on Tuesday in an unofficial review procedure, the South China Morning Post reported, citing a CSRC official and a banking analyst.

"The preliminary hearing was held to pave the way for a successful listing," the unnamed CSRC official told the newspaper. "Hearings of this kind could be held more than once if there is any problem."

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ABC's listing would mark the last of China's four largest banks. The bank received a $19 billion capital injection from Central Huijin, an investment arm of China's sovereign fund, at the end of 2008. It also hived off 800 billion yuan ($117.1 billion) of bad loans to clean up its books in preparation for the listing.

Two Chinese newspapers offered differing views about how the listing would unfold.

China Business News, a Shanghai-based newspaper, said the regulator would approve a listing of "A shares" in Shanghai before "H shares" in Hong Kong.

But the 21st Century Business Herald, a Guangzhou-based daily, said ABC was on track for a simultaneous dual listing in Hong Kong and Shanghai in July, in line with market expectations.

It also said the proportion of floated shares would be divided exactly evenly between Shanghai and Hong Kong, quoting a foreign banker participating in the IPO underwriting.