An executive at Agricultural Bank of China has reaffirmed the lender’s intention to raise US$20-30 billion through its planned initial public offering despite analysts assertions it could fall short of its target, the Wall Street Journal reported. ABC is pursuing a dual listing in Hong Kong and Shanghai, with a view to breaking the record for the largest ever IPO, set by Industrial and Commercial Bank of China (601398.SH, 1398.HK), which raised US$22 billion in 2006. But in recent days analysts have scaled back their projections to around US$18 billion. They note that the number of shares likely to be issued is smaller than expected while valuations are weakening for China’s already listed banks, which are busy issuing new debt and equity in order to replenish capital levels following last year’s credit binge. The ABC executive said there had been strong investor in interest in the IPO and that the bank may also bring on board foreign sovereign wealth funds as strategic investors.
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