1. How Merrill Lynch Assisted I C B C during the IPO Process
Section: Group: 3

2. Agenda Environment of Investment Bank Background of Merrill Lynch
Case study: ICBC

3. Global IPO situation First three quarters of 2006
% Change in
Proceeds
($US mils)
Number
of Issues
Number of Issues
United States
30,241.9
126
28,468.3
162
6.2%
Asia Pacific ex Australia
34,635.4
241
17,372.0
296
99.4%
Australia
2,070.7 35
4,842.3 57
-57.2%
EMEA*
63,971.5
278
38,626.5
229
65.6%
Japan
10,111.7
144
5,833.9
119
73.3%
*EMEA-Europe, Middle East & Africa
Source:

4. Performance of Investment Banks
1/1/2006-9/30/2006
1/1/2005-9/30/2005
Bookrunner
Proceeds
US$m
Rank
Mkt.
Share
No.
Deals
Chg. In
Mkt. Share
Morgan Stanley
15,367.5 1
10.2 53 3
8.2
2.0
Goldman Sachs & Co
14,603.6 2
9.7 43
8.4
1.3
UBS
13,010.2
8.7 47 4
6.2
2.5
JP Morgan
10,233.4
6.8 37 8
3.8
3.0
Credit Suisse
8,466.5 5
5.6 41
9.3
-3.7
Merrill Lynch &Co Inc
7,790.5 6
5.2 38
6.0
-0.8
Top Ten Total
61.2
352
49.4
Industry Total
150,457.7
100
877
Source:

5. Background of Merrill Lynch
formed on January 6,1914
became publicly traded company on June 23, 1971
presence in 35 countries and territories outside the United States
e.g. United States, Europe
Merrill Lynch Financial Centre – New York

6. Three business segments:
Global Markets and Investment Banking Group (“GMI”)
Global Private Client (“GPC” )
Merrill Lynch Investment Managers (“MLIM”)
Merrill Lynch Financial Centre – London

7. Main revenue come from Global Markets and Investment Banking Group (“GMI”)

8. The duties of “GMI” are:
- Securities underwriting - Strategic advisory services, including:      - Mergers and acquisitions      - Strategic valuation      - Other corporate finance and advisory
activities
For example:
ICBC has hired Merrill Lynch to arrange
its IPO of more than US$10 billion in 2006.

9. Background of ICBC leading financial player in China
multi-dimension business structure
market competitiveness
premier brand value

10. Its business lines include:
Liabilities business
Assets business
Intermediary business

11. Corporate Strategy Diversify Revenue and Asset Mix
Prudently Grow , Enhance Credit Portfolio
Continue to Improve Customer Mix and Profitability
Strategically Expand Traditional Branch Network and Enhance Sales and Marketing
Continue to Strengthen Risk Management and Internal Control Capabilities
Leverage Partnerships
Enhance Employee Performance

12. Case study: How Merrill Lynch Assisted I C B C during the IPO Process

13. How Merrill Lynch featured in the process of the IPO of ICBC
hire Merrill Lynch, Credit Suisse, China International Capital Corp and, ICEA
more than US$10 billion

14. Problem solving on 1 Sep and 11 Sep, 2006
(on 1September, 2006) ICBC A +H technical retard
(on 11 September, 2006 ) problem has been solved

15. Approval of IPO on 21 Sep, 2006
received provisional approval initial public offering
selling 13 billion Class A shares and billion Class H shares

16. Global Road shows from 9 Oct to 19 Oct,2006
started its international road show
first briefing for institutional investors about:
-ICBC will launch its IPO next Monday (16 Oct).
-Trading in both A shares and H shares of the bank will commence on 27 Oct.

17. Day of issue from 16 Oct to 23 Oct,2006
The minimum entering price of ICBC IPO is $3,101.
take the ICBC IPO application forms from banks
from white electronic IPO (

18. The close of the application lists 19 Oct, 2006 12: 00 noon
1)The close of the application lists of 1398.HK
International placing is over subscription for over 30 times
HK IPO retail over 76 times
attracts roughly over $418.3 billions worth of orders
2)IPO A is issued on-line

19. HK Economic Journal (信報) 2006-10-20

20. Price confirmation of A and H shares on 23 Oct, 2006
1)Both shares are priced at the top end of the indicative price range (HK$2.56-$3.07)
A share: RMB$3.12 while H share:HK$3.07
2)A-shares offered in Shanghai: 3.12 Yuan
at the limit of the IPO range of Yuan

21. HK Economic Times (香港經濟日報) 2006-10-18

22. Result announcementon 26 Oct, 2006

23. HK Economic Times (香港經濟日報) 2006-10-20

24. The First Day of Trade on 27 Oct, 2006
Start to be listed and traded
H share
Hong Kong
1398.HK
A share
Shanghai SS

25. The First Day of Trade on 27 Oct, 2006

26. The First Day of Trade on 27 Oct, 2006
Closing Price
H share: HK$3.52, a 14.66% rise
A share: RMB$3.28, a 5% rise

28. Our group’s conclusion

29. 1. Inspired other banks The world’s biggest IPO
Prepared for over a year
Need management system
It’s successful

30. 2. A and H shares simultaneously list
List on 27th Oct, 2006
H shares $ 3.07
A shares $ 3.12 yuan

31. 3. Price of the IPO can be higher

32. 4. eIPO First time issue No need to go to bank
Through internet 3 banks or PPS
(HSBC, Hengseng, China Bank)

33. Limitation
Send back the signature
Need to register first
In English

34. Thank You ! Merrill Lynch!