China The Biggest: IPO

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We already know that China is the largest IPO market but, after the Agricultural Bank of China slipped on its “greenshoe”, China has now also produced the largest IPO ever (again). Reuters reports:

“Agricultural Bank of China’s (AgBank) (1288.HK)(601288.SS) initial public offering hit a record $22.1 billion on Friday, after it exercised an over-allotment option in full…AgBank’s IPO thereby toppled fellow Chinese lender Industrial and Commercial Bank of China’s (ICBC) (1398.HK)(601398.SS) $21.9 billion offering in 2006 to become the world’s biggest.”.

Perhaps the bank (and its advisors) will celebrate over a few cold beers – as, you guessed it, China is now the biggest beer market…

From The Economist (via @Chinahearsay):

“In the space of a couple of decades the country has gone from barely touching a drop to become the world’s biggest beer market, a considerable distance ahead of America. And beer drinking in China is growing fast, by nearly 10% a year according to Credit Suisse’s World Map of Beer”.

Of course size is only one measure of success. Both the IPO and the beer market have had challenges, and China is often associated with a fair amount of froth…but the scale of opportunity means rich rewards for those that can get it right. For those that don’t, there is always a good horror story ot two to tell over a beer. Or two.

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