U.S. News

BoCom shares Surge 80% in Shanghai Listing


Shares in Bank of Communications soared 80% as they listed in Shanghai on Tuesday, after the bank's Shanghai initial public offering attracted a record 1.455 trillion yuan (US$189 billion) in subscriptions.

The A shares opened at 14.20 yuan on the Shanghai Stock Exchange against their initial public offer price of 7.90 yuan. Analysts had expected a debut at about 12 yuan, within a range of 11.26 to 12.76 yuan.

The opening left BoCom's A shares at a 71% premium to the HK$8.43 last close of the bank's Hong Kong-listed H shares  -- higher than the premiums of other top, dual-listed Chinese financial stocks.

BoCom, China's fifth-largest commercial bank, raised 25.2 billion yuan last month in the country's fourth-biggest domestic public offer by selling 3.19 billion new A shares, equivalent to 6.51% of its expanded capital.

The bank, which is 18.6% owned by HSBC Holdings, attracted the most subscriptions of any domestic IPO, reflecting massive demand for fresh equity in a stock market that has more than
tripled since the start of 2006.