After its listing on the Hong Kong and Shanghai exchanges in the largest initial public offering in the world, Industrial and Commercial Bank of China (ICBC), the largest bank in China, will make its first overseas acquisition.

It is acquiring a 90-per cent stake in Indonesia's Bank Halim. Bank Halim's shareholders will continue to hold the remaining 10-per cent stake, which ICBC has the option to acquire in three years.

The acquisition is subject to approvals from regulators in both countries.

On October 27, ICBC got its listing on the Hong Kong and Shanghai stock exchanges after raising $21.9 billion — the world's largest IPO.

According to a release issued by Bank Halim, the bank had $50 million of assets by the end of 2005, with a capital adequacy rate of 57.88 per cent and non-performing loan rate of 1.32 per cent.