Tortola Capital Report:China’s Agricultural Bank Recent IPO Set To Surge After Its Public Offering

The Agricultural Bank of China Ltd. is poised to do very well on its trading debut tomorrow and many analysts who have been monitoring the situation closely believe they may overtake rival Bank of China Ltd. on first day of trading.
By: James Hurst
 
July 14, 2010 - PRLog -- Hong Kong-Tortola Capital Analyst Robert Jacobson who has been keeping a close eye on the movements of Agricultural Bank of China leading up to their IPO, and has estimated that the company could gain as much as 6 percent on its day of debut.  Leading up to the public offering Agricultural Bank has been selling shares in China at 2.68 yuan each, valuing the company at $126 billion.

“This is a substantially large company coming into the market in China, with their customer base and large company worth Agricultural Bank is sure to shake things up and give rivals like Bank of China worries” said Jacobson yesterday during a meeting with other advisors from Tortola Capital.

Agricultural Bank chairman Xiang Junbo bolded the sharpest quarterly drop in Chinese stocks for the past two years to raise nearly $20 billion in Shanghai and Hong Kong.

Chinese investors took full advantage to offered stock ordering on average ten times more that what was available, placing their bets that the chairman will be able to increase profit by suppressing a cost-to-income ratio that is 20 percent higher than the average among China’s public banks being traded.

Speaking with Jacobsen in Hong Kong, Xu Jiulong, who helps to manage $1.3 billion at the Great Wall Fund in Shenzhen and also bought shares in the IPO said recently that “AgriBank should be glad to pull off a deal like this in such a weak market sentiment, and a decent gain on the debut would be the perfect icing on the cake.”

Tortola Capitals report indicates that public trading for Agricultural Bank will start in Hong Kong on the 16th of July, and looks to gain at least 5 percent on the debut.


For more information please visit www.tortolacapital.com or contact James Hurst at + 36 1 1577 2098

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