SHENZHEN, May 11 -- The Bank of China (BOC) will set its initial public offering (IPO) price in Hong Kong within the range of HK$2.50 (US$0.32) to HK$3 a share, to raise up to HK$76.8 billion, market sources said yesterday.

    The offering will involve 25.6 billion shares, representing 10.5 percent of the bank¡¯s enlarged share capital, sources said.

    The mainland¡¯s second-largest lender will begin marketing the IPO today, the sources said. The public offer will be open from May 18 to 23 and the shares are expected to begin trading in Hong Kong on June 1.

    A source said the price range represents 1.9 times to 2.2 times the bank¡¯s 2006 book value and will be cheaper compared to China Construction Bank which trades at about 2.6 times 2006 book.

    The offering is expected to be China¡¯s largest, topping China Construction Bank¡¯s initial share sale in October which raised around US$9.2 billion for the bank.

    Underwriters of the deal, which include BOC International, Goldman Sachs and UBS, may exercise a 15 percent over-allotment option, which could increase the size of the share sale to HK$88.8 billion, a source said, adding that it could result in the issue being the world¡¯s largest IPO in six years.

    Sources said the offering has drawn strong interest among institutions with 12 investors pledging to buy shares worth a combined US$180 million. Enditem

    (Source: Shenzhen Daily)