ABC "green shoe" mechanism: "passive" to become the world's largest IPO.

<P> 8 月 15 evening, the Agricultural Bank announcement, which at the last moment on Aug. 13 that the full exercise of its initial public offering of A shares over-allotment option. .Thus, the Agricultural Bank of A + H IPO with $ 22,100,000,000 of the total amount of financing, beyond the Industrial and Commercial Bank in 2006 financed record 21.93 billion U.S. dollars, the world's largest-ever IPO. .</ P> <P> announcement shows, A shares, the co-lead underwriters on August 13, 2010 the full exercise of the over-allotment option, the Issuer in accordance with the price of this offering 2.68 yuan, 22.235 billion in the initial release .based on the excess shares issued 3,335,000,000 shares, accounting for the initial issue size of this offering of 15%. .Agricultural Bank of China to raise additional funds therefore amounted to approximately 8.939 billion yuan, the end of this issue A shares to raise funds amounted to approximately 68.529 billion yuan. .H shares, the exercise of the over-allotment option, the total proceeds of about 93.504 billion Hong Kong dollars, or about 81.9 billion yuan. .</ P> <P> According to the announcement, the over-allotment of 3,335,000,000 shares issued through this part of the strategic investors get in the way late delivery, all issued for purchase online investors placing funds. .Excess stock was issued August 13, 2010 registered in the late delivery of the strategic investors in the stock account. .</ P> <P> since the issuance of shares traded at 13 August 2010 period, China International Capital Corporation, as the concrete implementation of this issue of "green shoe" operation of the lead underwriter, not over-use of this release .Placing the funds received from the centralized exchange market to buy this offering. .After 13 August 2010, CICC will not use this issue of over-allotment of funds received from the centralized exchange market to buy this offering. .</ P> <P> Earlier, the market worried about the over-allotment option expires, the bank or face the possibility of a break. ."Green Shoe" mechanism provides only for the price of 2.68 yuan or less to buy, but in the over-allotment option exercise period of the last trading day, 2.69 yuan price is very close to foot the bill. .Analysts said this means that a large number of investors in buying, also shows that agencies promising ABC. .Banking analysts have pointed out, even if the future appears less than 2.68 yuan ABC movements, loss of investment value does not mean ABC. .Because of this pricing to some extent underestimated, I believe the future is still some upside. .</ P> <P> to sources, the bank listed at the beginning, and not to the idea of the impact of the world's largest IPO, the bank hopes the listing process to innovate the system, both for the future other companies can be listed on the accumulation of .experience for reference. .</ P> <P> ABC "green shoe" mechanism first used the "Refresh" system </ P> <P> "We have not thought to be the world's largest IPO, this is not the original goal." .Agricultural Bank of China, a senior who recently told ABC the first time outside in the unknown story of the listing process. .ABC in the pursuit of the listing process, is a high quality list of shareholders, investors and issuers a win-win outcome and distribution system in the process of innovation. .However, with the ABC over-allotment option exercise is completed, the bank "passive" to become the world's largest IPO..