Qatar Investment Authority To Invest US$2.8 Bln In AgBank HK IPO - Source

21st Jun 2010 08:30

HONG KONG (Dow Jones)--Middle Eastern sovereign wealth funds Qatar Investment Authority and Kuwait Investment Authority are the biggest cornerstone investors in the Hong Kong portion of the US$20 billion-US$30 billion initial public offering by Agricultural Bank of China Ltd., one person familiar with the deal said Monday. The person said Qatar Investment Authority has signed a document to buy US$2.8 billion worth of shares in AgBank's mega-IPO, making it the single-largest investor in the IPO of the rural lender, which plans to list in both Hong Kong and Shanghai next month. Kuwait Investment Authority will invest between US$500 million and US$1 billion, the person said. Standard Chartered PLC will invest around US$500 million in the IPO, the person said. The rest of the cornerstone investors, the person said, will invest "around the US$200 million figure, either more or less." In an effort to ensure the deal, set to be the biggest IPO globally for years, is successful, AgBank is in talks to lock in cornerstone investors for around 40% of the Hong Kong shares being sold to institutional investors, two people familiar with the deal said. The bank, which plans to raise US$10 billion-US$15 billion from the Hong Kong portion of its IPO, according to the pre-marketing, or investor education, term sheet released last week, will sell 95% of the Hong Kong tranche to institutional investors and the rest to the Hong Kong retail public. It kicks off the roadshow for the Hong Kong tranche Thursday, two people said, with the Hong Kong listing slated for July 16, and the Shanghai listing the day before that. Cornerstone investors agree to buy a stake at the IPO price and not sell shares for six to 12 months, according people familiar with the situation. -By Nisha Gopalan, Dow Jones Newswires; 852 2583 2335; [email protected] (END) Dow Jones Newswires June 21, 2010 03:30 ET (07:30 GMT)