AgBank, the last of China's big four state-owned banks to go public, is selling 25.41 billion shares in Hong Kong and 22.24 billion shares in Shanghai. In what could turn out to be the largest IPO ever, the rural lender would raise about $US19.23 billion based on yesterday's pricing, according to a source.

The dual-listing deal could amass $US22.12 billion if underwriters acquire about $US2.89 billion more shares to sell to investors, the source said.

Industrial and Commercial Bank of China raised $US21.9 billion in its October 2006 IPO. Original predictions had put AgBank's proceeds at a $US30 billion.

However, investors seemed unready to shell out that much for shares in an asset whose profitability is deemed weaker than its urban-focused rivals.
China shares have fallen in recent weeks on fears that the large IPO may exceed demand, pulling prices lower. Stock markets around the world also tumbled and uncertainty over the economic recovery increased.

In Hong Kong, shares were valued at HK$3.20 each (41 cents), the midpoint of the expected range. In Shanghai, shares levelled at 2.68 yuan (40 cents), the top of the predicted limit.

Total earnings would amount to HK$81.31 billion in Hong Kong and 59.58 billion yuan in Shanghai.

Qatar Investment Authority ($3.34 billion), Kuwait Investment Authority ($953.18 million), Britain's Standard Chartered Bank ($595.73 million), Dutch bank Radobank Nederland ($297.87 million), Australia's Seven Group Holdings ($297.87 million) and Singapore's Temasek Holdings ($238.29 million) are AgBank's key foreign investors in the Hong Kong offering, according to the company.