(China) – China Merchants Bank has launched its 10.95 billion yuan (US$1.3 billion) IPO to domestic institutional investors, in China’s second largest listing.The Shenzhen based bank capped pricing for its A shares, available domestically only at a valuation of 21.47 times 2001 earnings.
The IPO is expected to complete relatively easily, as the Bank is one of China’s most profitable players, reporting a 2001 net profit jump to 1.38 billion yuan.
Seventy percent of the IPO is being sold to institutional investors, with the remaining 30 percent open to retail investors.