Banking

CRMC buys 12.8% of ABC H shares

(Agencies)
Updated: 2010-07-22 15:23

HONG KONG - Capital Research and Management Co has bought up 12.79 percent Agricultural Bank of China (ABC)'s H shares for HK$12.66 billion ($1.63 billion), making it the second-largest holder of the Hong Kong-listed shares.

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CRMC, a unit of US investment management group The Capital Group Companies, bought 3.932 billion ABC H shares for an average of HK$3.219 each during the trading debut of China's third-largest lender on July 16, according to a disclosure from Hong Kong Exchanges and Clearing.

As turnover for ABC's trading debut totalled HK$10.47 billion, CRMC's acquisition included shares it picked up in the international placing of the IPO, the Apple Daily reported, citing sources close to investment bankers.

Since the shares allocated to the firm in the IPO was less than CRMC wanted, the investment fund bought additional shares in the secondary market during the debut through Goldman Sachs, avoiding lock up restrictions, the newspaper said.

China International Capital Corp, Goldman Sachs Group Inc and Morgan Stanley led the Hong Kong offering.

Qatar Investment Authority holds about 22.2 percent of ABC's H shares.

Hong Kong-listed shares of ABC were up 1.24 percent at HK$3.26 by Thursday's midday trading break.