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China Construction Bank confirms record $7.7 bln IPO

The China Construction Bank (CCB) on Wednesday confirmed that it had raised 58.05 billion yuan ($7.71 billion) in China’s largest-ever initial public offering of shares.

The bank drew a record 2.26 trillion yuan ($300 billion) for the IPO in Shanghai, about 40 times its target, according to the China Securities Journal. China Construction Bank is one of China’s four largest commercial banks and its largest property lender. The issue of 9 billion yuan-denominated shares at 6.45 yuan each, to be traded in Shanghai, accounts for up to 3.85% of CCB’s expanded total shares. Analysts forecast that the shares will start trading at between 7.8 yuan and 9.6 yuan on the Shanghai stock exchange on September 25, the Shanghai Daily said.

Several other commercial banks have made large IPOs in recent months as the government encourages privatization. Shares in the smaller Bank of Beijing, China’s third city bank to launch an IPO, opened at 23 yuan in Shanghai on Wednesday, almost double the IPO price of 12.5 yuan. Another one of the “big four,” the Industrial and Commercial Bank of China (ICBC), recorded the world’s biggest IPO when it raised $19.1 billion last October in a dual-listing in Hong Kong and Shanghai. ICBC’s IPO earned 46.6 billion yuan ($6 billion) in Shanghai. (m&