Investment Bank – helping IPO listing Group 8 members: Tam Sio Peng, Pinky 033084 Wong Ka Wing, Wing 043100 Kwan Long Wai, Carlos 043130 Chan Wing Hong, Terry 043099 Yuen Chi Wing, Stephanie 043106 Cheuk Ying Ling, Monique 043098

Agenda Introduction and investment bank introduce Wong Ka Wing, Wing Investment bank business area Cheuk Ying Ling, Monique Yuen Chi Wing, Stephanie ICBC Listing road show Chan Wing Hong, Terry Kwan Long Wai, Carlos Tam Sio Peng, Pinky Forecasting and conclusion Cha Wing Hong, Terry

Concept of Investment Bank Europe No Division between Investment Banks and Commercial Banks All done by the so called ”Universal Bank”, or “Merchant Bank” Eg. Deutsche Bank AG, ABN AMRO I

Concept of Investment Bank Concept of IB is different in US and Europe In US Clear division between Investment bank and Commercial bank, the functions are different After the Stock Market Crash of 1929

What is Investment Bank ? type of wholesale financial institution firms-originate -underwrite -distribute new security issues of corporations and government agencies Unlike traditional bank X accept deposits from and provide loans to INDIVIDUAL C

Functions of Investment Bank Assist Corporations in Raising Funds Provide Strategic advisory services Middleman

Business Area 2006, Merrill Lynch & Co. was ranked _______th in the list Fortune 500 Offices in ______ countries About $______ trillion total client assets 2004, about ______ IPOs and raised > $43 billion 2005, about ______ IPOs and raised >$50 billion

Business Area 1914, the business was started and named by Charles E. Merrill and Edmund C. Lynch. 2006, Merrill Lynch & Co. was ranked 34th in the list Fortune 500

Business Area B Offices in 37 countries About $1.5 trillion total client assets As an investment bank, it is a leading global trader and underwriter of securities, a strategic advisor B

Business Area B

Business Area GMI(Global Markets & Investment Banking) Business distribution of GMI Institutional sales and trading, investment banking advisory and capital raising services to corporations, governments and institutions worldwide.

Business Area GMI (cont’d) 2004, about 216 IPOs and raised > $43 billion 2005, about 250 IPOs and raised >$50 billion More consulting fees from underwriting and distribution services ↑revenue

Business Area GPC(Global Private Client) Advice-based wealth management services and products to individual clients and businesses Support for their financial advisors e.g. private banking & investment, global banking, marketing, investment & wealth management, retirement and direct services

Business Area C Net Earnings of the Merrill Lynch from 2002 to 2005 Increased 49.99% from 2002 to 2005 C

Business Area Experience in China Joint Global Coordinator and the Main Underwriter of the IPO of SINOPEC Shanghai Petrochemical Co. Ltd. (上海石化) Main Underwrite of the IPO of Shenzhen Expressway Co. Ltd. (深圳高速公路) to raise 2.3 billions dollars

Time line of the ICBC listing

Time line for ICBC listing March 9 July 12 Sept 21 Merrill Lynch became the underwriters of ICBC Shares and H-Shares to be decided listing at the same time Passed listing listen Oct 20 Oct 16 Oct 24 Subscribing information releasing for public The upper limit price of H share to $3.07 was set. Stop subscribing 76 times over subscribing Oct 27 Oct 25 A-Shares and H-Shares listed same day. H-Shares price reached $3.63, which was the daily high at the first day listed. Merrill Lynch add-in the clause of under-writing group not to issue warrant during stable price period. $3.5 black market price

Oct 16 工行董事長姜建清昨透過視像會議，宣布招股詳情（大公報記者 蔡文豪 攝） 1

ICBC 招股書

散戶在銀行門口排隊，等候索取招股書 3

Oct 20 工行截止認購，散戶趕抵銀行遞交申請表 截至十月二十日，工行共收取約一百萬份申請表(表格+網上認購)。

Oct 27 工行H股及A股在香港及上海同步上市。 開市﹕$3.60 最高﹕$3.63 最低﹕$3.49 收市﹕$3.52 9

ICBC listing information A-Shares H-Shares Price 3.12 reminbi $3.07 Capital Freeze 700 billions reminbi $ 491.8 billions Over subscribing 13.97 times 74.74 times Listing date Oct 27 Fund raise 5.9 billions US dollars 21.9 billions US dollars

Forecast of Investment Banking Marco-environment Global IB ↑ CEPA and China enter WTO Corporation listed in Hong Kong ↑

Forecast of Investment Banking Expected Trend →no. of Chinese Corporation IPO in Hong Kong ↑ →Demand of IB service ↑ 8

Forecast of Investment Banking

Conclusion Set the share price, No. of share issued Assisting the processing of Roadshow, international Roadshow Attract more international investors Stablize the share price

END