Industrial & Commercial Bank of China Ltd. history, profile and corporate video
Industrial & Commercial Bank of China Ltd. engages in the commercial banking and financial services. It operates its business through the following business segments: Corporate Banking, Personal Banking, Treasury Operations and Others. The Corporate Banking segment offers corporate loans, trade financing, deposit-taking and custody activities, corporate wealth management, and corporate intermediary services. The Personal Banking segment deals with financial products and services to individual customers. The Treasury Operations segment includes money market transactions, investment securities, foreign exchange transactions, and the holding of derivative positions. The Others segment represents the assets, liabilities, income, and expenses that are not directly related or cannot be allocated to a segment. The company was founded on January 1, 1984 and is headquartered in Beijing, China.“
ICBC opened a branch in Luxembourg which became the European headquarters of the bank in 2011. ICBC (Europe) S.A. operates a network covering branches in major European cities, namely Paris, Amsterdam, Brussels, Milan, Madrid, Barcelona,Warsaw and Lisbon.1999
The bank’s Hong Kong operations are listed under the name ICBC Asia. It has purchased the Hong Kong subsidiary of Fortis Bankand rebranded it under its own name on 10 October 2005.
In the runup to its planned initial public offering, on 28 April 2006, three “strategic investors” injected US$3.7 billion into ICBC :
- Goldman Sachs purchased a 5.75% stake for US$2.6 billion, the largest sum Goldman Sachs has ever invested.
- Dresdner Bank (a wholly owned subsidiary of Commerzbank) invested US$1 billion.
- American Express invested US$200 million.
World’s largest IPO
ICBC was simultaneously listed on both the Hong Kong Stock Exchange and Shanghai Stock Exchange on 27 October 2006. It was the world’s largest IPO at that time valued at US$21.9 billion, surpassing the previous record US$18.4 billion IPO by Japan’s NTT DoCoMo in 1998. In 2010, AgBank broke ICBC’s IPO record when it raised $22.1 billion. China’s largest commercial bank was also the first company to debut simultaneously on both the Hong Kong and Shanghai stock exchanges.
ICBC raised at least US$14 billion in Hong Kong (H-shares) and another US$5.1 billion in Shanghai (A-shares). Due to heavy subscriptions, the greenshoe (i.e. over-allotment) placements were exercised and ICBC’s take rose to US$21.9 billion (17% of ICBC’s market value before the IPO), divided in US$16 billion in Hong Kong and US$5.9 billion in Shanghai. Following the global offering, the free float of shares was 22.14% of the market capitalization.
At the end of its first day of trading, the bank’s shares closed up almost 15% at HK$3.52 in Hong Kong, compared with the listing price of HK$3.07, which was set at the top of the indicative range due to the strong demand. According to Bloomberg, ICBC’s market capitalisationat the end of trade based on its Hong Kong shares was US$156.3 billion, making its equity the world’s fifth highest among banks, just behind JPMorgan Chase. Meanwhile, ICBC’s Shanghai-listed A-shares recorded more modest gains and ended up 5.1% from the offering price of RMB 3.12.
In August 2008, ICBC became the second Chinese bank since 1991 to gain federal approval to establish a branch in New York City.
At the 2008 ALB China Law Awards, ICBC was crowned:
- In-House of the Year – Banking & Financial Services In-House Team of the Year
- In-House of the Year – China In-House Team of the Year
In 2010, ICBC loaned $400 million towards the completion of the Gibe III dam in Ethiopia. Groups that oppose the dam such as International Rivers and Survival International have complained about or have written to ICBC against the dam’s funding.
During the 2013 Korean crisis, the Industrial and Commercial Bank of China halted business with a North Korean bank accused by the United States of financing Pyongyang’s missile and nuclear programs.
It was announced at the end of July 2013 that South Africa’s Standard Bank was in talks to sell its markets business in London to the Industrial and Commercial Bank of China for more than $500 million.”
*Information from Forbes.com and Wikipedia.org
**Video published on YouTube by “ResultsToronto“