China Mobile looking to raise USD 8.78 billion during its Shanghai IPO
Category: #business  By Pranali Mehta  Date: 2021-12-22
  • share
  • Twitter
  • Facebook
  • LinkedIn
China Mobile looking to raise USD 8.78 billion during its Shanghai IPO

After delisting itself from the New York Stock Exchange, China Mobile Ltd. now planning to raise approximately USD 8.78 billion during its Shanghai IPO. This could potentially become the world's second-largest IPO (Initial Public Offering), sources claimed.

For those unaware, This year's top three IPO rankings included Rivian Automotive, the world's largest IPO, which raised USD 13.7 billion followed by China Telecom at USD 8.3 billion, and Kuaishou Technology, which secured USD 6.2 billion.

Sources claimed that China Mobile intends to sell between 845.7 million and 972.6 million shares at USD 9.03 each, with an over-allotment option to gain robust investor demand. The offer price embodies a 52% premium above its Hong Kong-listed stock, which closed at USD 46.45 last week.

The stock offering is co-sponsored by CICC (China International Capital Corp.) and Citic Limited, and it will be traded in Shanghai under the 600941 codes.

It is worth noting that many Chinese companies have pre-conditioned to price their stocks at a higher price than their Hong Kong-listed shares. This is because the stock's fair value in Hong Kong differs from its perceived value in China, primarily due to differences in the economic scale.

Since 2020, at least 14 Chinese onshore companies that have been trading in Hong Kong listings have priced their stocks at a 189 percent premium, such as China Telecom, which valued its shares at USD 0.71, nearly double its Hong Kong equivalent pricing.

It is also worth mentioning that China Mobile has approximately 946 million customers as of 2020 and provides broadband service to nearly 205 million homes. The company captured an 11.6% revenue share in the domestic mobile phone market and a 17.8% market share in the data connection industry.

However, the company's growth in global markets is likely to be hampered due to the 5G business model not reaching the required maturity as well as the intense foreign competition.

Source credit:

https://www.scmp.com/business/banking-finance/article/3160489/china-mobile-set-raise-us878-billion-shanghai-ipo-complete

  • share
  • Twitter
  • Facebook
  • LinkedIn

About Author

Pranali Mehta

Pranali Mehta    

Pranali Mehta boasts of over three years of experience as a content writer. Having completed her graduation in chemical engineering, she worked as safety & environment associate in a chemical company for a year. Harnessing her passion for writing however, Pranali deci...

Read More >>

More News By Pranali Mehta

EU closes in on banning targeted ads to avoid misuse of sensitive data
EU closes in on banning targeted ads to avoid misuse of sensitive data
By Pranali Mehta

The European Parliament recently approved the initial draft of a bill that prohibits targeted advertising based on sensitive data such as religious beliefs, sexual orientation, race, or ethnic origin. The bill especially aims to address big tech comp...

Ambulance aggregator StanPlus secures USD 20 Mn to scale its offerings
Ambulance aggregator StanPlus secures USD 20 Mn to scale its offerings
By Pranali Mehta

StanPlus, the Hyderabad-based online ambulance aggregator, has reportedly raised USD 20 million in debt and equity during a funding round that was spearheaded by HealthQuad, Kalaari Capital, as well as HealthX Capital Singapore.  The fundraisin...

R&D projects worth USD 5.5 Mn approved under India-Israel tech fund
R&D projects worth USD 5.5 Mn approved under India-Israel tech fund
By Pranali Mehta

As a part of discussions on expanding the reach of India Israel Industrial R&D along with Technological Innovation Fund, the two nations have approved three joint R&D projects costing USD 5.5 million and discussed methods to develop a bigger ...