AgBank of China Poised For Huge IPO

Matt Hopkins Posted by Matt Hopkins|22 June 2010

China’s third-largest lending institution by assets is poised to make one of the world’s largest initial public offerings ever in July. The Agricultural Bank of China, one of the Big Four state-owned Chinese banks, expects to raise up to $28 billion when it begins trading July 14-15.

Agriculture input producers and distributors could see higher demand for products as AgBank, the last of the Big Four to issue shares, continues to fulfill its mandate to support poor farmers, agriculture businesses and rural infrastructure.

Agbank maintains more than 24,000 branches and has a more significant presence in rural areas than other Chinese banks, which generates lower returns but fulfills its goal of encouraging rural enterprise and development. Shares of AgBank will begin trading in Hong Kong July 14, and its success will set the tone for trading in Shanghai July 15.

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