AgBank marks the completion of China promise to give ‘big four’ banks to the public as China takes a big leap ahead in developing its rural regions. The Agricultural Bank of China has a share stock worth $23.2 bn in the world market. The bank plans to float its shares in the Hong Kong and Shanghai in the month of July.

It will be making a Initial Public Offering (IPO) on track so that it will be able to beat the $22 bn record set by the Industrial and Commerce Bank of China in the year 2006.The Bank has received a widespread support as The Sovereignty Wealth Fund Bank from Qatar and The Standard Chartered Bank and US food giant Archer Daniels Midland are interested in investing in the bank.

Agbank Chairman Xiang Junbo stated that the company strives to reduce its bad debt load that is a major issue for major banks in China and is caused due to state sanctioned loans at time of global financial crisis in the country.

According to an estimate AgBank plans to raise $13.1 bn from the Hong Kong IPO where it will be offering shares at a price range of 37 to 44 US cents a share.

While at Shanghai, AgBank will be floating its shares at a price range of 37-39US cents per share. According to analysts the forecast is estimated to reach 82.9billion Yan profit for the year 2010.

[Source: Business Bureau]