AgBank IPO hits record 22.1 bn

Agricultural Bank of China AgBank said on Sunday it had fully exercised an over-allotment option for the Shanghai portion of its initial public offering,taking total proceeds from the offer to 22.1 billion,making the IPO the worlds biggest. The statement by AgBank,posted on the website of the Shanghai Stock Exchange,confirmed a Reuters report on Friday.

The exercise of the over-allotment,also known as a greenshoe,pushed AgBank8217;s Hong Kong and Shanghai offering past Industrial and Commercial Bank of China8217;s ICBC 21.9 billion IPO four years ago.

Over-allotments are released when demand for the shares in the after-market is heavy. Underwriters release the shares,set aside at the original IPO price,to the allocated holders who then become public stockholders.

AgBank had already exercised a similar option for its Hong Kong portion last month.

The exercise of the over-allotment brings the number of shares sold in AgBanks Hong Kong and Shanghai offerings to 54.79 billion,increasing the original 19.3 billion raised by 15 percent.