Planned Bank IPO Nearly as Big as China's Great Wall
Filed in archive Private Equity on May 18, 2006
Fortune magazine has recently reported that the Industrial & Commercial Bank of China is more than satisfying the enormous appetites of investment banks lining up at the trough to get a huge slice of advisory fees anticipated in the bank's planned $12 billion IPO. The monolithic bank aims to list in mainland China after their scheduled initial public offering in Hong Kong in the fall.
The several hundred million dollars in fees will be split among these five firms: Goldman Sachs (Research), Merrill Lynch (Research), Credit Suisse (Research), Deutsche Bank (Research), and China International Capital Corp.
Who can dispute that in the past three years the Middle Kingdom has generated some of the world's largest IPOs, including the $3 billion listing of China Life Insurance on exchanges in New York and Hong Kong in 2003 and China Construction Bank's $9 billion offering on the Hong Kong stock exchange last fall. This month the Bank of China, China's second-largest bank, hopes to raise $9.9 billion from an IPO in Hong Kong. All told, the value of mainland deals in the pipeline this year could top $30 billion, and dozens of other Chinese companies have declared their intention to seek a foreign listing by 2008.
And it's not just IPOs. Increasingly, Chinese firms are players in the world's biggest cross-border mergers and acquisitions. Completed deals involving Chinese firms reached a record $28.5 billion in 2005, according to Thomson Financial, up from $1.9 billion in 1995. That figure is sure to climb as China eases restrictions on foreign investment and more of its own firms venture abroad.
Tags: China bank china great venture great+wall bank+nearly planned+bank
Vote for Planned Bank IPO Nearly as Big as China's Great Wall:
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Rating: 9.00 out of 2 vote(s) cast.
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Response from:
Fredik
(10/29/06 1:38pm)
I've been to the Great Wall several times. It's really great. Have many Pictures. Can post here.
Response from:
Joe Garcia
(11/15/06 8:26pm)
no comment
Response from:
prof inv
(11/23/06 1:45am)
IPO Race for Chinese Banking Solution Providers
While Chinese banks have jumped on the bandwagon of getting listed on the stock market and foreign banks continue their shopping spree, how about those local software solution providers?
To an outsider, such a company should have a good time. The reality is often elusive, though. While several of them race for an IPO on overseas stock markets, their operating environment has turned tough. Chinese banks, due to cost-cutting pressure in order to improve their figures, have been squeezing their suppliers; anti-corruption campaigns make sales unrepeatable because these suppliers often rely on bribing a particular decision maker for bonanzas, whose downfall may be devastating to the companies; the regulatory pressure on security and accountability is also a bad news for companies who lack of technical innovation but rely on copy-cat tactics or even outright piracy.
Here we look at three Chinese firms who appear to be interested in getting an IPO.
Financial Department of Digital China: As a company listed on the Hong Kong Stock Market (code: 0861.HK) since 2001, Digital China may want to spin off her financial department as a separately listed company. Although the company is not famous for technical excellence, with big banking sales and strong backing of her parent company, such a spin-off could still attract investors. It is said that the department has never made any profit on their own operations (the parent make it up by hardware sales etc), and its business model after spinning off remains unclear.
UnifiSoft: The rumor has it that the company may try to get listed on the London market, after many years of getting nowhere on the Singapore one. A Strong, focused supplier for Chinese banks, UnifiSoft has her own technologies but appear to be short of unique selling points, as her most income sources from system integration and hardware sales.
Yucheng: Probably the weakest of the three. The company was formed by China Unistone Acquisition Corp (CUAQ.OB) via merging two local companies: Sihitech and eChannels. The company seems a master of generating hot air, despite of being void of any technologies of her own. An alleged infringement of IBM's copyright has been well-known. While litigation looms (likely to take place in 2007), many whistleblowers are lurking for more exposures.
While Chinese banks have jumped on the bandwagon of getting listed on the stock market and foreign banks continue their shopping spree, how about those local software solution providers?
To an outsider, such a company should have a good time. The reality is often elusive, though. While several of them race for an IPO on overseas stock markets, their operating environment has turned tough. Chinese banks, due to cost-cutting pressure in order to improve their figures, have been squeezing their suppliers; anti-corruption campaigns make sales unrepeatable because these suppliers often rely on bribing a particular decision maker for bonanzas, whose downfall may be devastating to the companies; the regulatory pressure on security and accountability is also a bad news for companies who lack of technical innovation but rely on copy-cat tactics or even outright piracy.
Here we look at three Chinese firms who appear to be interested in getting an IPO.
Financial Department of Digital China: As a company listed on the Hong Kong Stock Market (code: 0861.HK) since 2001, Digital China may want to spin off her financial department as a separately listed company. Although the company is not famous for technical excellence, with big banking sales and strong backing of her parent company, such a spin-off could still attract investors. It is said that the department has never made any profit on their own operations (the parent make it up by hardware sales etc), and its business model after spinning off remains unclear.
UnifiSoft: The rumor has it that the company may try to get listed on the London market, after many years of getting nowhere on the Singapore one. A Strong, focused supplier for Chinese banks, UnifiSoft has her own technologies but appear to be short of unique selling points, as her most income sources from system integration and hardware sales.
Yucheng: Probably the weakest of the three. The company was formed by China Unistone Acquisition Corp (CUAQ.OB) via merging two local companies: Sihitech and eChannels. The company seems a master of generating hot air, despite of being void of any technologies of her own. An alleged infringement of IBM's copyright has been well-known. While litigation looms (likely to take place in 2007), many whistleblowers are lurking for more exposures.
Response from:
Mike Rogero
(04/29/07 10:40pm)
Just to follow-on to the last post, Global InfoTech (previously Unifisoft) hasn't ever made a bid to list on the Singapore market, isn't it great how these rumors start?
If anyone has any questions about Global InfoTech, our products or our industry, do feel free to contact me.
Mike Rogero
Vice President, Investor Relations
Global InfoTech Group
(formerly - Unifisoft)
+86 10 8527-1714
If anyone has any questions about Global InfoTech, our products or our industry, do feel free to contact me.
Mike Rogero
Vice President, Investor Relations
Global InfoTech Group
(formerly - Unifisoft)
+86 10 8527-1714
Response from:
canopy beds
(05/07/07 10:54am)
What can i say ? i'm pretty amazed. This company is really a model for all the little "players" on the market.
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