Investors queue for China Life
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HONG KONG, China (Reuters) -- Hong Kong investors queued outside bank branches Monday to subscribe for shares in China Life Insurance Co Ltd, which could be the world's largest listing this year at up to $3 billion.
"This is the first China stock I've considered buying," said Linda Mak, who was collecting a subscription form at an HSBC branch on eastern Hong Kong island, where about 20 hopeful investors congregated before the doors opened.
China Life is printing 2.2 million application forms for retail buyers and another 400,000 for brokerages, or enough for one in three Hong Kong residents.
"There is lots of media coverage, and I think the life insurance industry is still in its infancy in China and there is lots of growth potential," said Mak, lugging a prospectus that exceeds 1,000 pages to include both English and Chinese.
IPO (initial public offering) fever has gripped Hong Kong since PICC Property and Casualty Co, China's biggest property underwriter, generated a 50 percent return on its November 6 debut and a long rally in the broader market began to lose steam. Shares in PICC remained 54 percent above their IPO price at Friday's close.
A rally in Hong Kong stocks and mainland-related shares in particular is fueling the frenzy.
The index of Chinese shares in Hong Kong has more than doubled this year on rising profits and China's booming economy. By comparison, Hong Kong's benchmark Hang Seng Index is up 32 percent in the year through Friday.
State-controlled China Life is selling 6.47 billion shares, or a quarter of its enlarged share capital. Its IPO shares will be priced at HK$2.98-$3.65 each, or 1.44-1.64 times its estimated book value for 2003.
It will begin trading in New York on December 17 and in Hong Kong the following day.
Another company, Chinese truck and sport utility vehicle maker Great Wall Automobile Holding Co, generated such strong investor interest that it was forced last week to increase the number of share application forms available by four-fold to one million.
Great Wall, which will list in Hong Kong on December 15, aims to raise up to $196 million. Many investors said they planned to sell the stock on the first trading day to lock in profits.
Copyright 2003
Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
