As much as 40% of Agricultural Bank of China’s (ABC) initial public offering may go to corporate – or cornerstone – investors, Bloomberg reported, citing two people familiar with the situation. Rabobank Groep, Qatar Investment Authority, Kuwait Investment Authority, Archer Daniels Midland and China Life Insurance (LFC.NYSE, 601628.SH, 2628.HK) are said to be interested in buying a combined US$6-10 billion of ABC’s shares. Cornerstone investors are guaranteed shares in Hong Kong IPOs on the condition that they retain their holdings for a certain period of time. Having big name institutions or individuals involved helps a company drum up interest in its offering. ABC hopes to raise US$20-30 billion through its Shanghai-Hong Kong dual listing, which was approved by the mainland securities regulator on Wednesday. However, some analysts have questioned whether the bank can reach its fund-raising target.
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