Investment Bank – helping IPO listing Group 8 members: Tam Sio Peng, Pinky 033084 Wong Ka Wing, Wing 043100 Kwan Long Wai, Carlos 043130 Chan Wing Hong,

Investment Bank – helping IPO listing

Group 8 members:Tam Sio Peng, Pinky 033084Wong Ka Wing, Wing 043100Kwan Long Wai, Carlos 043130Chan Wing Hong, Terry 043099Yuen Chi Wing, Stephanie 043106Cheuk Ying Ling, Monique 043098

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

Wong Ka Wing, Wing

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

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

Investment Bank

From Commercial Bank e.g. Morgan Stanley

Developed from Brokerse.g. Merrill Lynch

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

Functions of Investment Bank

① Assist Corporations in Raising Funds

② Provide Strategic advisory services

③ Middleman

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

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

Business Area

• 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

Business Area

Merrill Lynch

Global Markets & Investment

Banking(GMI)

Global Private Client(GPC)

Business Area

GMI(Global Markets & Investment Banking)

45%

28%

12%

7%8%

Private clients

Capital market

Investmentbanking

Private assets mgt

Others

Business distribution of GMI

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

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

Business AreaNet Earnings of the Merrill Lynch from 2002 to 2005

Increased 49.99% from 2002 to 2005

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

Time line of the ICBC listing

Time line for ICBC listing

Merrill Lynch became the underwriters of ICBC

AShares and H-Shares to be decided listing at the same time

Passed listing listen

Subscribing information releasing for public

Stop subscribing76 times over subscribing

The upper limit price of H share to $3.07 was set.

$3.5 black market price

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.

March 9 July 12 Sept 21

Oct 24 Oct 16 Oct 20

Oct 25 Oct 27

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）

ICBC 招股書

散戶在銀行門口排隊，等候索取招股書

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 ) 。

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

A-Shares H-Shares

Price 3.12 reminbi $3.07

Capital Freeze

700 billions reminbi $ 491.8 billions

Over subscribing

13.97 times 74.74 times

Listing date

Oct 27 Oct 27

Fund raise

5.9 billions US dollars 21.9 billions US dollars

ICBC listing information

Forecast of Investment Banking

Marco-environment

Global IB ↑

CEPA and China enter WTO

Corporation listed in Hong Kong ↑

Forecast of Investment Banking

Expected Trend

→no. of Chinese Corporation IPO in Hong Kong ↑

→Demand of IB service ↑

Forecast of Investment Banking

Conclusion

• Set the share price,

• No. of share issued

• Assisting the processing of Roadshow, international Roadshow

• Attract more international investors

• Stablize the share price

END