China’s Agricultural Bank selects IPO underwriters

Chinese and foreign firms constitutes group of underwriters that handles much-awaited $20mln plus stock offering.

Agricultural Bank of China Ltd. said it has selected a group of underwriters for its planned initial public offering in Shanghai and Hong Kong that is expected to raise at least $20 billion.

Agricultural Bank of China is the only one among China's big four state-run lenders that has yet to float shares and its IPO is widely expected by analysts and investment bankers to supersede the $22 billion stock offering by Industrial & Commercial Bank of China Ltd. in 2006 to be the world's largest. While the date has been uncertain, the IPO has been eagerly anticipated by global and Asian investment banks hoping it could result in fat fees.

Of the underwriters selected, only China International Capital Corp. will be among the underwriters for both its IPOs in Hong Kong and Shanghai, Agricultural Bank said in a statement on its Web site.

Citic Securities Co., Guotai Junan Securities Co. and China Galaxy Securities Co. are the other underwriters for its A-share offering in China, while Goldman Sachs Group Inc., JPMorgan Chase & Co., Morgan Stanley, Deutsche Bank AG and Macquarie Group Ltd. are the other underwriters for its H-share offering in Hong Kong, according to the statement.

In addition, Agricultural Bank said its wholly-owned investment banking unit, ABC International Holdings Ltd., will also participate in underwriting work for the lender's Hong Kong IPO.

In November 2008, China Investment Corp., the country's sovereign-wealth fund, injected US$19 billion into the bank to shore up its capital, a move broadly seen at the time as the start of the restructuring of Agricultural Bank and the first move toward listing shares.

View the full story in the Wall Street Journal.