Bank of Beijing, the largest city commercial bank in China, attracted a record 1.9 trillion yuan of initial public offering (IPO) subscription from both institutional and individual investors, Thursday's China Securities Journal reported.
This figure surpasses the former 1.6 trillion yuan A-share subscription record set by China COSCO this June.
The bank will issue 1.2 billion A shares on the Shanghai Stock Exchange at 12.5 yuan each, the high end of the projected price range between 11.5 yuan and 12.5 yuan, with a P/E ratio (price-to-earnings) of 36.8 times, according to the newspaper.
The IPO will help the bank raise 15 billion yuan to boost its capital adequacy ratio and capabilities of risk control and profits making.
Bank of Beijing is the third of the nation's 114 city-level commercial banks to go public, after Bank of Nanjing and Bank of Ningbo listed in July this year.
The IPO subscription of Bank of Beijing exceeded the combined 1.86 trillion IPO orders for Bank of Nanjing and Bank of Ningbo. The nation's first two listed city commercial banks finally raised a combined 11.1 billion yuan from the domestic equity market.
"The bank is pleased at investors' enthusiasm and will try to create more values and build itself into a commercial bank with international competitiveness," said Yang Shujian, a secretary with the bank's Board of Directors.
ING Bank is currently the largest shareholder of Bank of Beijing, with a 19.9-percent stake, and the International Finance Corporation (IFC) holds a five percent stake.
Bank of Beijing now operates 123 branches in Beijing and one in neighboring Tianjin municipality. (One U.S. dollar is equal to 7.52 yuan.)