MercoPress. South Atlantic News Agency

Chinese biggest state-owned bank raises 22 billion in initial public offering

The Agricultural Bank caters mostly to the rural community

Agricultural Bank of China raised a record 22.1 billion USD in its initial public offering (IPO) in July despite a lukewarm response when the shares first went on sale. The IPO is the last by China's four biggest state-owned banks.

Its total surpasses the 21.9 billion set by the Industrial and Commercial Bank of China in 2006.

The bank managed to raise the figure after exercising an over-allotment option for its Shanghai share sale.

Agricultural Bank of China failed to excite investors during the first day of trading because they were worried about whether the bank's management could transform it into a modern, profitable concern.

The bank is China's main lender to the rural community. Chinese investors are watching closely to see whether this latest news might help lift the beleaguered stock market in Shanghai.

The Shanghai bourse has lost about 25% of its value since the beginning of the year.

Concerns about slowing economic growth and problems overseas in key markets such as Europe, are said to be worrying investors. Agricultural Bank of China is the third-largest component on the main China index. (BBC).