Investment Bank – helping IPO listing
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Transcript of Investment Bank – helping IPO listing
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Investment Bank – helping IPO listing
Group 8 members:Tam Sio Peng, Pinky 033084Wong Ka Wing, Wing 043100Kwan Long Wai, Carlos 043130Chan Wing Hong, Terry 043099Yuen Chi Wing, Stephanie 043106Cheuk Ying Ling, Monique 043098
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Agenda
Introduction and investment bank introduce
Wong Ka Wing, Wing
Investment bank business area
Cheuk Ying Ling, Monique
Yuen Chi Wing, Stephanie
ICBC Listing road show Chan Wing Hong, Terry
Kwan Long Wai, Carlos
Tam Sio Peng, Pinky
Forecasting and conclusion
Cha Wing Hong, Terry
Wong Ka Wing, Wing
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Concept of Investment Bank
• Europe
• No Division between Investment Banks and Commercial Banks
• All done by the so called ”Universal Bank”, or “Merchant Bank”
• Eg. Deutsche Bank AG, ABN AMRO
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Concept of Investment Bank
Concept of IB is different in US and Europe
In US• Clear division between Investment bank and
Commercial bank, the functions are different• After the Stock Market Crash of 1929
Investment Bank
From Commercial Bank e.g. Morgan Stanley
Developed from Brokerse.g. Merrill Lynch
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What is Investment Bank ? type of wholesale financial institution firms-originate -underwrite -distribute new security issues of corporations and government agencies Unlike traditional bank X accept deposits from and provide loans to INDIVIDUAL
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Functions of Investment Bank
① Assist Corporations in Raising Funds
② Provide Strategic advisory services
③ Middleman
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Business Area
• 2006, Merrill Lynch & Co. was ranked _______th in the list Fortune 500
• Offices in ______ countries
• About $______ trillion total client assets
• 2004, about ______ IPOs and raised > $43 billion
2005, about ______ IPOs and raised >$50 billion
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Business Area
• 1914, the business was started and named by Charles E. Merrill and Edmund C. Lynch.
• 2006, Merrill Lynch & Co. was ranked 34th in the list Fortune 500
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Business Area
• Offices in 37 countries
• About $1.5 trillion total client assets
• As an investment bank, it is a leading global trader and underwriter of securities, a strategic advisor
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Business Area
Merrill Lynch
Global Markets & Investment
Banking(GMI)
Global Private Client(GPC)
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Business Area
GMI(Global Markets & Investment Banking)
45%
28%
12%
7%8%
Private clients
Capital market
Investmentbanking
Private assets mgt
Others
Business distribution of GMI
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Business Area
GMI (cont’d)
• 2004, about 216 IPOs and raised > $43 billion
• 2005, about 250 IPOs and raised >$50 billion
• More consulting fees from underwriting and distribution services ↑revenue
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Business Area
GPC(Global Private Client)
• Advice-based wealth management services and products to individual clients and businesses
• Support for their financial advisors
• e.g. private banking & investment, global banking, marketing, investment & wealth management, retirement and direct services
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Business AreaNet Earnings of the Merrill Lynch from 2002 to 2005
Increased 49.99% from 2002 to 2005
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Business Area
Experience in China
• Joint Global Coordinator and the Main Underwriter of the IPO of SINOPEC Shanghai Petrochemical Co. Ltd. ( 上海石化 )
• Main Underwrite of the IPO of Shenzhen Expressway Co. Ltd. ( 深圳高速公路 ) to raise 2.3 billions dollars
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Time line of the ICBC listing
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Time line for ICBC listing
Merrill Lynch became the underwriters of ICBC
AShares and H-Shares to be decided listing at the same time
Passed listing listen
Subscribing information releasing for public
Stop subscribing76 times over subscribing
The upper limit price of H share to $3.07 was set.
$3.5 black market price
A-Shares and H-Shares listed same day. H-Shares price reached$3.63, which was the daily high at the first day listed. Merrill Lynch add-in the clause of under-writing group not to issue warrant during stable price period.
March 9 July 12 Sept 21
Oct 24 Oct 16 Oct 20
Oct 25 Oct 27
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Oct 16
工行董事長姜建清昨透過視像會議,宣布招股詳情(大公報記者 蔡文豪 攝)
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ICBC 招股書
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散戶在銀行門口排隊,等候索取招股書
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Oct 20
工行截止認購,散戶趕抵銀行遞交申請表
截至十月二十日,工行共收取約一百萬份申請表 ( 表格 + 網上認購 ) 。
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Oct 27 工行 H 股及 A 股在香港及上海同步上市。
開市﹕ $3.60
最高﹕ $3.63
最低﹕ $3.49
收市﹕ $3.52
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A-Shares H-Shares
Price 3.12 reminbi $3.07
Capital Freeze
700 billions reminbi $ 491.8 billions
Over subscribing
13.97 times 74.74 times
Listing date
Oct 27 Oct 27
Fund raise
5.9 billions US dollars 21.9 billions US dollars
ICBC listing information
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Forecast of Investment Banking
Marco-environment
Global IB ↑
CEPA and China enter WTO
Corporation listed in Hong Kong ↑
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Forecast of Investment Banking
Expected Trend
→no. of Chinese Corporation IPO in Hong Kong ↑
→Demand of IB service ↑
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Forecast of Investment Banking
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Conclusion
• Set the share price,
• No. of share issued
• Assisting the processing of Roadshow, international Roadshow
• Attract more international investors
• Stablize the share price
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