After being excluded from the New York Stock Exchange, China Mobile aims to float shares in Shanghai. With planned revenue equal to $8.8 billion, it will be China’s largest initial public offering in a decade.
The basics in brief
- The other two state-owned telecom groups China Telecom and China Unicom are already listed in the People’s Republic of China.
The US government banned the three companies from trading shares earlier this year because it accused them of ties to the Chinese military.
China Mobile said it plans to sell 845 million shares in Shanghai on Tuesday at 57.58 yuan each. Including the over-allocation option, the total revenue can reach 56 billion yuan. It will be China’s fifth largest IPO ever and the largest since Agricultural Bank of China 2010. China Mobile intends to use the proceeds to expand its 5G network and cloud business.
Former US President Donald Trump had banned investment in about 30 Chinese companies during his tenure, which he said had links to the military. The index providers then took dozens of Chinese companies out of their benchmarks, but initially kept the three telecom providers because they had so much US money. Soon, they were dismissed, just a few weeks before the US Federal Communications Commission revoked China Telecom’s license in the US. She cited security concerns as a reason.
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