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SHANGHAI, April 27 (Reuters) - Bank of Communications (3328.HK), China’s fifth-largest lender, has priced its $3.3 billion Shanghai IPO at the top of an indicated range, it said on Friday, as investors snapped up the country’s fourth-largest IPO.
BoCom, in which HSBC Holdings Plc. (HSBA.L)(0005.HK) holds a 19.9 percent stake before the Shanghai initial public equity offer, priced its Shanghai IPO at 7.9 yuan per share, it said in a statement jointly issued with lead underwriters.
The price was 31.28 times its 2006 per share earnings based on the expanded capital after the Shanghai offer, it said in the statement. It meant BoCom would raise as much as 25.2 billion yuan ($3.3 billion).
BoCom would issue as much as 3.19 billion A shares for a Shanghai listing on May 15, representing 6.51 percent of its expanded capital of 48.994 billion outstanding shares, it said.
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The Shanghai IPO attracted a record 1.455 trillion yuan ($188 billion) in subscriptions, state media reported on Thursday.
Retail investors subscribed about 1.155 trillion yuan to the initial public offering, while institutions put up around 300 billion yuan, the official China Securities Journal quoted sources familiar with the offer as saying.
The number of subscriptions means BoCom’s IPO is expected to be about 58 times subscribed, a high level for a major financial IPO though below the more than 90 times seen for CITIC Bank’s smaller offer.