JSM Financial: Agricultural Bank of China has banks scrambling for a piece of a $20 billion IPO.

April 8, 2010 - PRLog -- The Agricultural Bank of China has caused major waves in Western and Chinese investment banks after it recently announced that it is seeking out banks for its more that $20 billion IPO, JSM Financial has learned.

Analysts have told JSM Financial that if successful the deal could be the world’s largest IPO ever and would generate at least $500 million in fees for the investment banks competing to play a part in the deal.

The mega-IPO has apparently been on the cards for some time but few expected it this soon.

JSM Financial has learned from reports that it is anticipated that AgBank is looking to raise an offering equal to or above the roughly $20 billion that the Industrial and Commercial Bank of China raised in 2006 through a dual listing on the Hong Kong and Shanghai exchanges.

Reports also indicate that the fee earned on that deal was 2.5%. The fee structure for the new deal has not yet been disclosed but applying the same equation participating banks would share over $500 million.

"Everyone is focused on the FIG space in China right now," JSM Financial believes an ECM banker recently commented, referring to China's financial sector, and the huge amount of fees it's producing.

# # #

JSM Financial is an independent broker focused on the realization of superior returns from seed stage and early-stage equity investment and active partnerships with exceptional entrepreneurs building market-leading technology companies.