Bank of China (BoC) yesterday braved volatile global stock markets to price its listing, the world's largest in six years, near the top end of its price range, raising $9.73 billion (€7.61 billion) in Hong Kong.

BoC, which is floating 10.5 per cent of its enlarged share capital, priced its shares at 2.95 Hong Kong dollars (€0.29) each, near the top end of an indicative price range of HK$2.50-HK$3, after attracting a huge number of orders.

Strong demand for BoC, one of China's "big four" lender, bodes well for a group of other Chinese lenders in line to raise at least $14 billion on overseas markets in the next year. The pricing values BoC at more than $90 billion, making it one of the world's 10 largest banks by market capitalisation. It also means that the value of Royal Bank of Scotland's stake has more than doubled since a consortium led by the UK bank agreed to invest $3.1 billion in return for a 10 per cent stake in BoC last August.

RBS bought a 5 per cent stake, while the rest was shared between investors including Merrill Lynch and the tycoon Li Ka-shing.

Retail investors applied for more than 75 times the shares available and institutional investors 20 times, meaning that BoC is likely to exercise an over-allotment option that would increase the offering size by 15 per cent to $11.2 billion. That would make the IPO the world's fourth largest. A Saudi Arabian consortium including Al Azizia Commercial Investment Company, which is chaired by the Saudi investor Prince Alwaleed bin Talal, paid $2 billion for a 2.7 per cent stake in the bank's common equity.

The heavy demand for BoC is a positive sign for Industrial and Commercial Bank of China, the country's largest bank, which is set to raise more than $10 billion in Hong Kong and possibly London or New York later this year.

A number of smaller Chinese banks are also planning to float shares in overseas markets as part of Beijing's efforts to reform its banking system. China Merchants Bank, regarded as one of China's best-managed lenders, is seeking to raise $2 billion. Minsheng Bank and Citic Bank are also planning listings worth about $1 billion each.