ICICI Becomes the First Indian Company
to List on the NYSE
On September 22, 1999, ICICI priced its American
Depository Shares (ADSs) at $9.80 per ADS representing 5 common shares of
the company at Rs.85.75 per share. This price represents a 10.3% premium
to the 5-day average price of the share on both the domestic exchanges after
adjusting for the fact that the ADS holders will receive dividend only for
half the year. The underlying strength of the demand and the quality of
the orders received were such that ICICI was able to price the issue at
a premium even to the 5-day average GDR bid-price on the London Stock Exchange.
Having completed a full audit of its accounts
in accordance with the US GAAP in record time, ICICI launched its international
roadshows in Singapore on the 14th of September. Using three teams of
senior management, ICICI spanned the entire globe in only a week and received
orders for its ADSs totaling over $1.6 billion (over Rs.7,000 crore) against
an issue size of only $275 million (Rs.1,200 crore) representing an unprecedented
subscription of almost 6 times. The issue saw strong demand, coming from
all over the world with US based investors providing the largest proportion.
Reflecting the strong underlying positive sentiment towards India and
ICICI, US based retail investors put in over $300 million (Rs.1,300 crore)
worth of orders, providing orders well in excess of the total issue size.
ICICI allocated the orders with a great deal of care in order to ensure
that the maximum allocations were provided to the highest quality investors.
ICICI's ADSs also listed on the New York
Stock Exchange today. Trading commenced in the ADSs at 9.30a.m. Eastern
Standard Time and Mr. K.V. Kamath, Managing Director and Chief Executive
Officer of ICICI became the first CEO of an Indian company to ring the
NYSE trading bell in the over two centuries that the exchange has been
in existence. The NYSE is the largest market for listed equities in the
world and a listing on the exchange signals the arrival of ICICI in the
league of global banks. After Bank of Tokyo Mitsubishi, ICICI becomes
the 2nd Asian bank and one of a handful of non-US banks to list on the
NYSE with a full scope US GAAP Audit.
September 22, 1999