BEIJING, June 7 -- The Bank of China - coming of the world's biggest initial public offerings in six years - said it plans to follow the overseas float by selling up to 10 billion more shares on the home market.

    The sale is likely to be the biggest IPO ever on China's mainland, analysts said.

    China's No. 2 bank by assets has filed an application with the state securities regulator to issue shares on the Shanghai Stock Exchange, the Beijing-based lender said in a statement yesterday without specifying a timetable.

    The listing committee at the China Securities Regulatory Commission is to vet the plan on Friday, and analysts believe the flotation can be wrapped up by the third quarter.

    The Bank of China raised US$9.73 billion in a Hong Kong IPO last month.

    The lender's shares, which started trading last Thursday, closed at HK$3.575 (46 US cents) yesterday, up 21.2 percent from the HK$2.95 IPO price.

    Even if the upcoming shares are discounted 15 percent from the bank's Hong Kong price, as widely expected, the proposed mainland sale would likely raise more than 20 billion yuan (US$2.5 billion), the biggest of all initial offers in Shanghai and Shenzhen.

    The top mainland IPO so far was the 11.8 billion yuan raised in 2001 by China Petroleum & Chemical Corp, Asia's biggest oil refiner.

    "It's almost certain that the Bank of China's yuan-backed shares will be hotly pursued by local investors given the bank's long-term development prospects," said Li Zhi, a Hualin Securities Co analyst. "The bank may also benefit as it is set to be the first major company to go public after a yearlong stock sale ban."

    The bank, which operates 11,600 outlets worldwide, controls more than a third of the country's foreign-exchange transactions. It forecasts that net income will rise 27 percent to US$4.1 billion this year as growing fee-based financial services and mounting lending bolster profit.

    The bank received a US$22.5 billion government bailout in 2003, restructured into a joint-stock venture and signed agreements that brought in strategic overseas investors, including the Royal Bank of Scotland Group Plc and Temasek Holding Pte.

    China's securities regulator last month restarted fundraising activities on the mainland bourses after a one-year moratorium to facilitate a national program to turn all non-tradable state-owned stakes at listed firms into tradable equities.

    Authorities have been urging industrial giants, including those already listed on overseas markets, to float stock at home to sustain market momentum.

    The benchmark indexes in Shanghai and Shenzhen have climbed nearly 45 percent this year after a four-year slump.

    Hong Kong-listed PetroChina Co and China Mobile (Hong Kong) Ltd have expressed interest in selling shares on mainland stock exchanges.

    (Source: Shanghai Daily)