The IPO, raising US$9.7 billion, the world’s largest for some six years, closed heavily oversubscribed and priced at HK$2.95 per share amid a clamour from retail and institutional investors alike.
“This is one deal that investors have to buy,” says a syndicate head in Hong Kong. Perhaps so, but does that apply regardless of price? Bank of China is being valued at 2.2 times book value. That might be justifiable if you buy into the inexorable growth of China’s...
