India's second-largest lender, ICICI Bank, raised $4.9 billion in the country's biggest share sale, pricing it at the upper end of a range after funds scrambled to get a piece of the fast-growing financial sector.
The bank said it raised $2.14 billion through a sale of shares in India and $2.14 billion through an offer of American Depositary Shares, pricing each ADS at about $49.25. The total funds raised included a greenshoe option.
ICICI, which received huge bids from Singapore's Temasek Holdings and private equity firm Warburg Pincus, priced the domestic issue at 940 rupees, near the top of an indicated band of Rs 885-950 a share.
The company is selling 19 to 20 per cent of its expanded share capital to fund loan growth while maintaining its capital adequacy ratio.
But bankers said the retail portion of the India offering was poorly subscribed.
Qualified institutional buyers subscribed to 21.6 times the number of shares on offer, non-institutional investors 6.1 times and retail investors just 1 time.
Analysts said the poor retail response was not surprising as Indian retail investors often shun stocks with a high price per share.
Earlier this month, property developer DLF Ltd raised $2.25 billion in India's biggest initial public offering, but the retail response there was also muted.
With assets of more than $79 billion second only to government-run State Bank of India ICICI built its business by aggressively chasing consumer loans when India opened its economy in the 1990s and spurred rapid economic growth.
ICICI shares, which fell nearly 10 per cent to a low of 844.10 rupees after the share sale announcement earlier this year, ended 0.43 per cent up at Rs 953.75 on Friday.
The latest sale surpasses the $2.3 billion raised by state-run Oil & Natural Gas Corp in 2004.
The issue was lead-managed by Goldman Sachs, Merrill Lynch and JPMorgan at the global level and joined by JM Financial and Enam Financial Consultants in the domestic sale.