News says ABC cuts h-share underwriter's commission to 1.5%

According to the Hong Kong media quoted close to the underwriting group, the Agricultural Bank of China (01288.HK) beat the H-share underwriter's commission to 1.5% to 1.7%, significantly lower than the 06 ICBC (01398) H-Shares on the listing of 2.5%, and the proportion of its H shares nearly half of the Wei subscription amount,　　Underwriters may receive a lower commission.　　On a 1.5% commission basis, 7 H-Shares underwriters will earn no more than 1.1 billion to 1.33 billion Hong Kong dollars, compared with ICBC's 2.5% commission, which could result in a successful savings in financing costs of up to 730 million to HK $890 million.　　But the ABC spokesman has not yet made an official response to the news.　　ABC's IPO prospectus revealed that AgBank's H-shares and a-shares plan to issue 25.4 billion and 22.2 billion shares respectively, with the share price range set at 2.88 to HK $3.48. According to the report, if AgBank is priced at HK $3.2 or above, plus the exercise of excess placements, it will raise a total of HK $175 billion by A+h to break the record of ICBC.　　In the case of a 1.5% commission, AgBank's fund-raising is higher than ICBC's, but its commissions are less than ICBC's.　　ICBC on the market, the H-Share underwriter commission of 2.5%, in the H shares of HK $125 billion, the underwriters charged a total of HK $3.1 billion.　　However, the report also said, according to the current market deduction part of the basic investors, the international placement has been oversubscribed 7 times times, the lower Commission does not have a significant impact on the sale of ABC. The underwriters of AgBank's listed shares include CICC, Citic Securities, Galaxy Securities and Guotai, while the H-Shares underwriters include CICC, Goldman Sachs, Morgan Stanley, Deutsche Bank, JP Morgan, Macquarie and Bank International.