World’s largest IPO ICBC $21.9 Billion
Written By TarikIndustrial and Commercial Bank of China prepares for the world’s largest initial public offering of $21.9 billion. ICBC adds to the list of recent Chinese Bank offering as the world’s largest lender finally allows domestic and international investors to buy some Chinese banking stocks.
Wait 4 weeks before thinking about buying ICBC shares
My take on the IPO is to wait at least 30 days before you consider buying some shares. $21.9 billion is a very large sum of money, so a $1,000 or even $10,000 investment makes up a small portion of the shares outstanding. Also, do not be afraid to admit ignorance in a particular foreign sector or industry. I’m not very familiar with China’s banks, but am familiar with the banking industry. So allow your prior knowledge to assuage the burden of learning more about a specific niche. Start reading up on Chinese banks and the economy BEFORE you invest. If you cannot, then let a financial advisor do your homework.
Can’t Beat China’s GDP Growth
With the all recent IPO�s for banks in China, only invest in one bank and stick with it. That’s all you’ll ever need because a well leveraged China investment will return you big dollars. Why is that? Because investors should never ignore a market that sports 10% GDP growth rate. That truly is easy money.
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Post/Read Comments
February 19th, 2007 at 2:06 am
[…] Take China for example. The recent $19 billion ICBC initial public offering reveals that future growth prospects for China are expected to be huge. China has tons of cash and billions of residents who have achieved more than 10% GDP over the past year. GDP growth will fluctuate from year to year, but nonetheless 10% growth is a great starting point for the new bank IPOs. China’s banks will continue to improve their lending strategies over time as this giant nation becomes more familiar with how the American loan system operates. Too many Chinese banks sponsor lousy businesses at the moment, but this will definitely improve in the near future. […]
March 2nd, 2007 at 2:44 am
[…] other Chinese banking pick raised $19 billion dollars in US in the world’s largest IPO share offering in history. Industrial and Commercial Bank of China hold $890 billion dollars in assets and has […]