ZTE planning IPO in HK

8 Nov 2004

Chinese equipment manufacturer ZTE Corporation is rumoured to be planning the launch of an initial public offering (IPO) on the Hong Kong stock exchange next month, via which it hopes to raise around USD350 million. According to CHINADaily, ZTE, which listed on the Shenzhen bourse in 1997, claims to have received approval from the China Securities Regulatory Commission to offer up to 162.2 million shares in a Hong Kong listing, although the company did not disclose what proportion of its total equity this would represent. ZTE, which posted a net profit of CNY513 million (USD62 million) for the first six months of 2004, up from CNY195 million a year earlier, has said it will use the proceeds from the IPO to fund its overseas expansion as well as enhance its research and development capabilities.