BEIJING, Oct. 20 (Xinhua) -- China International Capital Corporation Limited (CICC; 03908.HK) kicked off online and offline subscription for its A-share initial public offering (IPO) stocks Tuesday, reported National Business Daily.
CICC, the first joint-venture investment bank in China, released late on Monday an A-share market IPO announcement saying to issue in total 458.589 million stocks, with 96.303 million stocks to be offered online.
Compared with the start of this year when Guolian Securities (601456.SH) and BOC International (China) Co., Ltd. (601696.SH) raised respectively less than two billion yuan, the CICC's A-share IPO is projected to raise as much as around 13.198 billion yuan.
Publicized data showed that CICC set the price of its A-share IPO stocks at 28.78 yuan per share, with the price earnings ratio (P/E) at 33.89 times, much higher than the 23 times of highest P/E for securities brokers in China by far.
As CITIC Securities' non-banking business team held, CICC reported better than sector average return on equity (ROE) from 2017 to 2019 at 7.5 percent, 8.3 percent and 8.8 percent respectively thanks to its sound business development and debt management.
Essence Securities thought the most eye-catching point of CICC was its customer structure where numerous large firms engaged in traditional and emerging industries and quality enterprises with high growth potential prevail.
Based on these, market watchers expected relatively high bid-to-cover ratio for subscriptions for CICC's A-share IPO stocks Tuesday. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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