A regional lender based out of Shanghai has just set the record for A-share subscriptions by making recourse to online channels.
Shanghai Rural Commercial Bank (SRCB)’s IPO has amassed 16,965,592 effective subscribers via online channels subscribing for 412.582 billion shares, according to its “Initial Public Offering Share Online Subscription and Lot Winning Rate Report” (首次公开发行股票网上申购情况及中签率公告) issued on 5 August.
According to the report the lot winning rate for the online issue is 0.07012738%.
Data from Wind indicates that the number of effective subscribers and the number of effectively subscribed shares for the online issue have created a record for subscriptions for new issues made by A-share banks.
Sector analysts point out that the profitability of Chinese bank shares on the secondary market remains low, with the sector’s dynamic P/B ratio also hovering at historic lows.
The SRCB issue has attracted much interest from investors given its strong growth potential and high quality, as well as the low holdings of bank-themed investment funds.