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

2. 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

3. 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

4. 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

5. 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

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

7. 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

8. 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

9. 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

10. Business Area B

11. 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.

12. 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

13. 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

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

15. 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

16. Time line of the ICBC listing

17. 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

18. 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

19. ICBC 招股書

20. 散戶在銀行門口排隊，等候索取招股書 3

21. 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)。

22. 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

23. ICBC listing information
A-Shares
H-Shares
Price
3.12 reminbi
$3.07
Capital Freeze
700 billions reminbi
$ 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

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

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

26. Forecast of Investment Banking

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

28. END