The world’s largest mobile network operator China Mobile Ltd. plans to raise up to 56 billion yuan ($ 8.8 billion) through a listing on the Shanghai Stock Exchange. The listing is said to be China’s largest public offering in a decade, and comes just over a year after the company’s launch from the New York Stock Exchange, Reuters reported.
China Mobile is the largest network operator on the planet in terms of total number of subscribers and the latest in a growing number of Chinese companies seeking to raise funds at home or in Hong Kong amid Sino-tensions. growing Americans.
Just this month, Washington added a number of Chinese companies to its blacklist, including artificial intelligence firm Sense Time Group, over allegations of human rights violations. The United States has also just finalized new rules that would allow it to kick non-compliant Chinese companies from U.S. stock exchanges.
In a prospectus, China Mobile revealed that it plans to sell up to 845 million shares at 57.58 yuan each, which would allow it to raise 48.7 billion yuan before exercising an over-allotment option. Reuters said.
Once exercised, it would raise up to 56 billion yuan, making it the fifth largest increase in the country’s history. It would also be the highest listing in China since the Agricultural Bank of China went public in 2010.
The proceeds from the offering will be used by China Mobile to develop premium 5G networks across China, as well as infrastructure for cloud resources and smart ecosystems, Reuters said.
The report adds that China Mobile’s smaller competitors, including China Unicom and China Telecom, are both already listed in China.
All three companies were delisted from the New York Stock Exchange following a decision by then-US President Donald Trump in 2020 to restrict investment in Chinese technology companies. This policy was left unchanged by the administration of new President Joe Biden.
In addition to these sanctions, the United States Securities Exchange Commission recently finalized new rules that will allow it to deregister more Chinese companies.
The trend for Chinese companies to raise funds at home is accelerating, with five of the top 10 listings in Hong Kong in 2021 being secondary listings of Chinese companies whose shares are already available on US stock exchanges.