Middleburgh SpeculatesIndustrial & Commercial Bank of China
was simultaneously floated a couple of weeks ago (October 27) on the HKSE (1398) and Shanghai SE with much fanfare;
- Worlds largest IPO
- First Chinese company to use an over-allotment option in a domestic IPO
The five underwriters happen to include Merrill Lynch, in whom I happen to have a passing interest. In entepreneurial HK unlike Shanghai, people got into the spirit of things and longqueues
formed to buy shares on the morning they went on sale.
So did the punters do well or would they have been advised to simply bet on the Melbourne Cup ??
Well, the chart says it all...
The presssing questions are
- were the shares were originally underpriced ??
- or are they now grossly overpriced.??
What would I know - My fancy in the Melbourne Cup is still running.... I was however struck by the symbolism of the stairs at side of the ICBC building. Depending upon which way you look at them, they either
- have the same angle of ascent as the share price (is this good feng shui?) or
- they portend an imminent market correction (and decent ?)
but then as I said what do I know .........