OREANDA-NEWS. February 04, 2013. Since 2012, ICBC International, the investment banking arm of ICBC in Hong Kong, has maintained good momentum despite the prevailing uncertainties in Hong Kong capital market, reported the press-centre of ICBC.

According to figures from Dealogic, a financial-information provider, ICBC International sponsored 7 IPOs last year. In terms of the value of deals inked in Hong Kong capital market last year, IPOs underwritten by ICBC International made up 63%. ICBC International was the No. 2 underwriter and No.1 Chinese investment bank in Hong Kong.

To an investment bank, playing the main role in large IPO deals not only constitutes an important option for business expansion but a direct reflection of market dominance and company strength. In 2012, ICBC International underwrote 4 out of the top 5 IPO deals in Hong Kong market. They were IPOs of The People's Insurance Company (Group) of China Limited ("PICC"), Haitong Securities, Yitai Coal and China Machinery Engineering Corporation ("CMEC"). The IPO of PICC gained the highest profile among the H-share projects in Hong Kong in the past two years. It was also the largest IPO in Asia (excluding Japan) in 2012.

The placement of H-share for Haitong Securities is currently the largest IPO of domestic stock broker in Hong Kong market, ICBC International has successfully attracted the largest cornerstone investor. This is another major breakthrough of ICBC International subsequent to the placement of H-share in 2011 for CITIC Securities, the first stock broker in Mainland China. The H-share IPO of CMEC was one of the most successful initial public offering in Hong Kong market. It attracted much attention from both international institutional investors and retail investors in Hong Kong in the face of difficult market conditions in December 2012. Closing price of CMEC H share rose nearly 17% on the IPO date.

ICBC International scales up its international presence while focusing on Hong Kong market, playing an important role for large offering except in Mainland China and Hong Kong market. In 2012, ICBC International was mandated as one of the bookrunners and underwriters for Carlyle IPO in the United States worth USD 670 million. Carlyle Group, an international investment management company, was very impressed by the services of ICBC International, especially the arrangement of road show and investor communication.

In merger and acquisition, ICBC International makes huge inroads in supporting Chinese enterprises to go global. In the two M&A deals completed by ICBC International, the first was for Shandong Heavy Weichai Ferretti Group to acquire 75% stake (worth EUR 374 million) in Ferretti through restructuring, the latter is a famous Italian manufacturer of luxury yachts in the world. The second deal was for China Three Gorges Corporation to acquire 21.35% stake in Portuguese power group (Energias de Portugal) worth EUR2.69 billion, the biggest overseas minority equity investment by a Chinese power company as of today.