Related: BOC's HK listing a "milestone"  

           Bank of China plans to issue no more than 10 billion A share

    HONG KONG, May 17 (Xinhua) -- Bank of China Limited (BOC) announced on Wednesday that its Hong Kong public offering will commence on Thursday.

Bank of China (File photo)

    BOC Chairman Xiao Gang said at a press conference on Wednesday that "as the oldest and one of the best-known commercial banks in China, we have an extensive overseas branch network, a solid customer base and a universal banking platform."

    He said "we are a leader in non-interest income and foreign exchange business with strong product innovation capabilities. The overall listing of the bank in Hong Kong is to open another exciting chapter of the Bank's hundred-year history."

    He said the bank will offer a total of 25.57 billion H shares in its global offering, including initially 1.28 billion H shares for the Hong Kong public offering and 24.29 billion H shares for the international offering, subject to adjustment if there is substantial oversubscription in the Hong Kong public offering.

    He said if the over-allotment option is exercised, the bank will issue up to an aggregate of 3.83 billion H shares.

    The offer price will not be higher than 3.00 HK dollars (0.38 U.S. dollars) per share and is expected not to be lower than 2.50 HK dollars (0.32 U.S. dollars). The final price will be determined on May 24, 2006.

    He said, trading of the bank's H share is scheduled to commence on June 1 on the main board of the Hong Kong Exchange and Clearing Limited. The lot size is 1,000 shares.

    BOCI Asia Limited, Goldman Sachs (Asia) L.L.C and UBS AG are the joint global coordinators, joint book runners, joint sponsors and joint lead managers.

    Xiao said the net proceeds of the bank's global offering will be approximately 68.07 billion HK dollars (8.73 billion U.S. dollars) after deducting the underwriting fees and estimated expenses payable by the bank.

    He said the bank intends to use the proceeds to strengthen its capital to support its future business growth.

    He said the Chinese mainland and Hong Kong markets are the foundations of the bank's development. "With the support of all our customers, I am certain that Bank of China will further develop and expand and create value for all our customers and shareholders." Enditem