Everbright Bank begins online subscription

China Everbright Bank is on course to raise more than 21 billion yuan from its Shanghai initial public offering, the second largest IPO this year after the Agricultural Bank of China. Everbright Bank began its online subscription on Tuesday. The IPO has dragged down the key stock index on liquidity concerns. Everbright Bank set its offering price at 3.1 yuan a share, at the top end of the indicative range. The Price/Earnings ratio is 16.4, a little higher than that of AgBank. Everbright Bank sold 6.1 billion yuan-denominated A-shares in the IPO, which could increase to seven billion shares if the lender exercises the overallotment option. Subscription to the offering closed on Tuesday afternoon, the relatively cheap valuation attracted strong demand. One investor said "I think it's worth buying. Once the bull market came, this stock must be the leading gainer." One investor said "I think the price may rise around 2 percent when it lists on the market." It's estimated online subscription capital for Everbright Bank may exceed 300 billion yuan. 6 stocks listed on the Growth Enterprise Market board on Monday, and another 6 will list on Wednesday. Liquidity on the market is currently looking relatively tight. Analysts say the benchmark Shanghai Composite Index rose 15 percent from its latest bottom. The rebounding trend may continue. Shi Yong, analyst said "The fluctuation and adjustment is likely to continue for a while. The benchmark index may rise further." Everbright Bank will announce its IPO price this Thursday, and list on the A-share market on August 18th.