ABC Announces price range prospectus shows big dividend as misunderstanding

Today, the Agricultural Bank of China issued the initial public offering of Agricultural Bank of China, a share of the preliminary inquiry results and the issue price interval bulletin, the announcement showed that the agricultural bank a-share issue price range of 2.52 yuan/shares-2.68 yuan/share (including the upper and lower limits), so much attention to the issue If ABC prices in accordance with the price range, and a-share, H-shares full exercise of the option of excess placements, a-share issue will reach 25.57 billion shares, the H-Shares will expand to 29.22 billion shares, AgBank will raise more money than ICBC, become a veritable "the world's largest IPO." Such a big raise would have to be reminiscent of media reports that "several institutional investors questioned AgBank's special dividend during the roadshow," with fears that AgBank would have 88 billion of billions of dollars in dividends.　　Since there is such a huge dividend, the need for large-scale financing is questionable. Previous media reports said: ABC in 2009 has decided to allocate 20 billion yuan to the original shareholders of the company, namely, the Ministry of Finance and Huijin, but also remaining about 40 billion yuan of unallocated profits; about 40 billion of AgBank's profits in the first half of this year will be allocated after extracting 10% of the Statutory Provident Fund and 20% of the general This will have a dividend of about 28 billion dollars.　　According to this understanding, the above three sums of money to carry out a simple add up to a large sum of 88 billion yuan of dividends to be distributed before the listing. The huge dividend apparently mobilized investor nerves, for this reason, the reporter to ABC published the letter of intent to carefully check, found that the prospectus dividend distribution in the chapter on the issue of dividend distribution has a more detailed exposition.　　After calculation, the reporter found that the ABC stock market before the dividend is not as the media had said before the huge 88 billion yuan. According to the prospectus, the dividend distribution plan for 2009, which was adopted by ABC General Meeting, AgBank's 2009 annual unallocated profit of 58.386 billion yuan, of which 20 billion yuan as the annual dividend of 2009, according to the proportion of shares, distributed to the Ministry of Finance and Huijin two shareholders, the remaining 38.386 billion yuan unallocated profit as a general reserve.　　Therefore, after the implementation of the 2009 annual profit distribution of ABC, the unallocated profit on ABC's book in the 2010-year period is actually 0! So how much is the special dividend before the ABC market? The reporter also made some projections. Agricultural Bank in the first half of 2010 years to achieve the net profit is half of the annual profit forecast, Agricultural bank net profit should be about 41.5 billion yuan, extract 10% of the Statutory Provident Fund and 20% of the general preparation, the first half of this year's cash dividend is the special dividend is about 29 billion yuan.　　Plus the 2009 annual dividend of 20 billion yuan, ABC's before the IPO dividend is only 49 billion yuan, far lower than the previous media reported 88 billion yuan. A senior banking analyst said that the 49 billion yuan dividend is not much, of which 20 billion yuan for 2009 years of dividend, which is the share of shareholders in 2009, according to the Agricultural Bank of 2009-year net profit of 65 billion yuan calculation, dividend ratio of 31%, which compared with other listed banks in the same trade is not high.　　For special dividends, special dividend distribution is generally in order to repay the old shareholders in the history of the consistent support, is the practice of the same industry, ICBC, CCB before the listing have been a special dividend distribution. It is understood that July 1 ABC will release the "Investment Risk Special Bulletin", "under the network issued a notice" and "online funds to purchase an announcement."