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China Mobile aims to raise US$8.6 billion in mainland’s biggest IPO for over a decade to finance 5G network expansion
- The world’s largest wireless network operator was among four Chinese companies ejected from the New York Stock Exchange over purported ties to the Chinese military
- More Chinese ‘homecoming’ firms will list in Shanghai and Hong Kong, say analysts, amid increasing hostility in the US
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China Mobile, the world’s largest wireless network operator, aims to raise about 56 billion yuan (US$8.6 billion) in its stock flotation in Shanghai in what would be the biggest IPO in the mainland Chinese market in more than a decade, according to a listing prospectus it issued on Wednesday night.
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Separately, China Unicom said on Thursday that it was considering a spin-off and separate listing on a mainland China bourse of its internet of vehicles subsidiary, China Unicom Smart Connection Technology Company. China Unicom did not indicate the size or timing of a potential listing of the unit, in which it owns a 69.2 per cent stake.
Hong Kong-listed China Mobile, which was delisted from the New York Stock Exchange in May, proposes to issue up to 965 million yuan-denominated shares, known as A-shares, according to the prospectus posted on the China Securities Regulatory Commission (CSRC) website. The listing is still pending CSRC approval.
The issued shares, which will be equivalent to 4.5 per cent of China Mobile’s enlarged capital base, will be listed on the main board of the Shanghai Stock Exchange.
China Mobile may increase its offering by 15 per cent if its two sponsors, CICC and Citic Securities, exercise an overallotment option, also known as a “greenshoe” option, in the event of strong demand.
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