Bank of China announced a small stake sale of CNY10 billion to the country’s social security fund. The stake sale comes ahead of the initial public offer, which is expected later during this year. BOC’s spokesman, Wang Zhaowen, while confirming the completion of the 4%-5% stake sale to the State Welfare Fund, said that the IPO scheme is progressing according to plans. Last week, there were media reports suggesting that BOC had already filed an application with the Hong Kong Stock Exchange for the IPO, which Zhaowen did not confirm.
In Aug 2005, BOC had appointed Goldman Sachs Group Inc, UBS and Bank of China International, as its financial advisors and lead underwriters for the IPO. In Dec 2005, BOC entered into strategic investment deals with the Royal Bank of Scotland Group, Swiss-based bank UBS, Singapore’s Temasek and the Asian Development Bank. The four strategic investors together agreed to buy a total of 16.9% of BOC. BOC has been chosen by the government as a pilot firm to take part in the country’s banking reform process.