The deal came as the Hong Kong stock market soared 444 points, or 2.2%, to a new closing high of 20,772 points. The close was only seven points off the intraday peak of 20,779 points, which was reached two minutes before the final bell.
However, like most of the other Hong Kong-listed Mainland banks, Bank of China has come off its recent record of HK$4.51 from January 3 and in the past week it has hovered in a range between HK$4.03 and HK$4.11. Yesterday it added one cent to HK$4.07.
The selling shareholder, which disposed of his entire stake in the MainlandÆs second largest lender, wasnÆt disclosed, but the shares hadnÆt been subject to any lockup or other restrictions in connection with Bank of ChinaÆs July IPO. The shares sold yesterday accounted for no more than 0.1% of the company and less than one dayÆs trading volume.
The deal, which was arranged by Goldman Sachs, comprised 354.5 million H-shares and the final price represented a 1.7% discount to MondayÆs close.
According to a source, the sale attracted over 40 investors primarily from Asia and Europe (with a slight bias for the former) and one or two US-based names. The order book was said to have been more than two times covered.
The stock has risen 38% since its trading debut in July, which would have contributed to the good demand. Investors also know the stock well after the extensive marketing in connection with the IPO, making it a very straight forward transaction.
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