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AgBank picks banks for $23bn Hong Kong-Shanghai flotation

City A.M. Reporter
THE Agricultural Bank of China has chosen the banks to lead its more than $23bn (£15.5bn) initial public offering (IPO), sources involved with the process said yesterday, a move that finally sorts out the key roles for the deal.

AgBank’s selection of its top banks came as key investors swooped in on the offering while its underwriters market the dual listing to institutional investors. Qatar has agreed to invest $2.8bn into AgBank’s IPO, according to a report.

AgBank, China’s third largest lender, has selected its internal securities unit, as well as CICC, Goldman Sachs and Morgan Stanley as joint global coordinators for the offering, granting these banks top status for the IPO’s handling among the 11 banks picked to underwrite the Shanghai-Hong Kong deal.

The joint global coordinators take on the most responsibility for an IPO and also stand to earn the biggest fee, which in the case of AgBank could be one of the largest fee pools ever for an IPO. Should the offering exceed $21.9bn, it would be the largest IPO in history, shedding around $450m in fees to the banks at an estimated two per cent charge.