The Agricultural Bank of China
The massive IPOs for two of China's biggest banks -- the Bank of China and the Industrial and Commercial Bank of China -- proved that the growth of the Chinese economy was no fluke. But who would've thought that yet another bank offering would trump both?
The Agricultural Bank of China (ABC) started off humbly, founded by Mao Zedong as a resource for rural farmers, but it hit the big time on July 6, 2010, raising $19.2 billion in a single day to become the biggest initial public offering in history. By the end of the day's trading, the once-humble bank was worth about $128 billion – more than Citigroup and Goldman Sachs [source: Wines].
ABC was the last of China's four largest banks (the last being the China Construction Bank) to go public. Although the initial stock offering took a bit of a hit due to concerns about the durability of China's economy and a slew of Chinese bank bailouts, ABC's triumph continued China's hot streak in the IPO world. According to The New York Times, more than one-third of the new IPOs came from Chinese companies -- a significant increase from the quarter that that came from the country the previous year. What does this mean for China? It's still too early to tell, but it's worth noting that both Morgan Stanley and Goldman Sachs have bet big on the Chinese bank [source: Lee].
- Ascarelli, Silvia. "Deutsche Telekom gets off to fast start; Europe's biggest IPO makes investors 19% in an hour in Frankfurt." Wall Street Journal. Nov. 18, 1996. http://www.faqs.org/abstracts/Business-general/Deutsche-Telekom-gets-off-to-fast-start-Europes-biggest-IPO-makes-investors-19-in-an-hour-in-trading.html
- BBC. "UK population breaks through 60m." Aug. 24, 2006. http://news.bbc.co.uk/2/hi/uk_news/5281360.stm
- Benner, Katie. "Visa IPO priced at record $17.9 billion, or $44 a share." Fortune. March 19, 2008. http://money.cnn.com/2008/03/18/news/companies/visa_ipo.fortune/
- Bloomberg. "George Soros says Russia's OSA Rosneft IPO should not proceed." July 6, 2006. http://www.financialexpress.com/printer/news/169832/
- Bremner, Bill. "The great China IPO haul." BusinessWeek. October 26, 2006. http://www.businessweek.com/globalbiz/content/oct2006/gb20061025_732349.htm
- BusinessWeek. "Enel's Franco Tato on the world's largest IPO." November 4, 1999. http://www.businessweek.com/bwdaily/dnflash/nov1999/nf91104d.htm
- BusinessWeek. "High water mark for the Nikkei?" September 2, 1996. http://www.businessweek.com/archives/1996/b3491069.arc.htm
- BusinessWeek. "The biggest IPOs in the world." Accessed November 19, 2009. http://images.businessweek.com/ss/06/10/world_ipos/source/1.htm
- Business Wire. "Australian telecommunications giant Telstra opens for trading on the New York Stock Exchange." November 17, 1997.http://www.allbusiness.com/media-telecommunications/7020701-1.html
- Chan, Cathy. "ICBC completes record IPO as demand tops $500 billion." Oct. 20, 2006. http://www.bloomberg.com/apps/news?pid=20601087&sid=aOmbpID5H3HE&refer=home
- CNBC. "The largest IPOs in US history." Accessed Nov. 13, 2009. http://www.cnbc.com/id/23339535
- Dow Jones Newswires. "Deutsche Telekom: No plans yet for T-Mobile IPO." Sept. 23, 2005. http://www.cellular-news.com/story/14178.php
- Enel SpA. "Company profile." Accessed Nov. 17, 2009. http://www.enel.it/azienda_en/chi_siamo/
- Funding Universe. "Visa International - company history." Accessed Nov. 17, 2009. http://www.fundinguniverse.com/company-histories/Visa-International-Company-History.html
- Isidore, Chris. "GM IPO Biggest Ever." CNN Money, Nov. 18, 2010. http://money.cnn.com/2010/11/17/news/companies/gm_ipo_pricing/index.htm
- Jagannathan, Ravi. "Why have IPO auctions failed the market test?" Northwestern University. September 2007.http://www.econ.northwestern.edu/seminars/Nemmers07/Jagannathan.pdf
- Kaufman, Wendy. "Investors flock to buy Visa after record IPO." NPR. March 19, 2008. http://www.npr.org/templates/story/story.php?storyId=88552276&ft=1&f=1001
- Lague, David. "Bank of China IPO raises $9.7 billion." The New York Times. May 24, 2006. http://www.nytimes.com/2006/05/24/business/worldbusiness/24cnd-ipo.html?ex=1306123200&en=5a27478f8c95fc60&ei=5088&partner=rssnyt&emc=rss
- Lee, Yvonne. "AgBank IPO fails to excite Hong Kong's Small Investors." July 1, 2010.
- Mann, Bill. "The largest IPO in history." Motley Fool. Oct. 27, 2006. http://www.fool.com/investing/international/2006/10/27/the-largest-ipo-in-history.aspx
- NYSE. "Visa, Inc., the largest IPO in U.S. history, lists on the NYSE." March 19, 2008. http://www.nyse.com/press/1205922636390.html
- Portnoy, Sandy and Jastrow, David. "AT&T IPO rolls forward on first day, others hit brakes." CRN. April 28, 2000. http://www.crn.com/it-channel/18833855;jsessionid=PFZS1EFNSQTXZQE1GHPSKH4ATMY32JVN
- ProPublica. "Bailout Timeline: Another Day, Another Bailout." http://projects.propublica.org/bailout/main/timeline
- ProPublica. "Where is the Money? Eye on the Bailout: General Motors." http://projects.propublica.org/bailout/entities/233-general-motors
- Reuters. "Kraft raises $8.7bn from IPO." June 13. 2001. http://www.foodnavigator.com/Financial-Industry/Kraft-raises-8.7bn-from-IPO
- Scott. Aaron. "NTT DoCoMo's debut lifts shares, but effect is not expected to last." Dow Jones Newswires. Oct. 23, 1998. http://online.wsj.com/article/SB909069489156229500.html?mod=googlewsj
- Steel Guru. "Rosneft IPO rakes in $10.4 billion." July 17, 2006. http://www.steelguru.com/sfTCPDF/getPDF/MTEyMTc%3D/Rosneft_IPO_rakes_in_%252410.4_billion.html
- Wall Street Journal. "Asian markets mixed; NTT unit IPO lifts Tokyo." Oct. 22, 1998. http://online.wsj.com/article/SB909005858772224000.html?mod=googlewsj
- Wines, Michael. "China Bank I.P.O. raises $19 billion." The New York Times, July 6, 2010. http://www.nytimes.com/2010/07/07/business/global/07ipo.html
HowStuffWorks looks at what hedge funds are, who invests in them and why are they so risky.