The Agricultural Bank of China (ABC) is still on a bumpy road with its listing plan, as stakeholders of the bank suggest it not rush ahead, the Century Weekly reported Monday.

China Securities Regulatory Commission said it is to approve the ABC's dual initial public offerings (IPOs) on the Shanghai and Hong Kong stock exchanges Wednesday, allowing the bank to issue no more than 22.24 billion A-shares and 25.4 billion H shares. And the bank plans to go public on the two bourses on July 16, according to the magazine.

Officials from the Ministry of Finance and Central Huijin Investment, the two shareholders of the bank said it should not be in such a rush or better postpone the plan, though both say it is up to the bank to decide the listing date, according to the magazine.

Recent market fluctuations have clouded the bank's listing path, and ABC's domestic peers are also in fundraising campaigns.

Some media reports and domestic institution investors have low expectations from the bank floating plan, saying the bank should wind down its price-to-book (P/B) ratio, though the bank's underwriters remain positive.

Senior management of ABC expect its price-to-book ratio to be between 1.8 and 1.85, but the fundraising size would shrink from its original target if it adopts a lower ratio.

People familiar with the deal say it would be better for the bank to act in a flexible manner, to postpone the listing till the market warms up or issue more shares on the domestic market.

"But who knows what the market will be like after half a year?" worried another underwriter of the bank.

(chinadaily.com.cn June 8, 2010)