Netcom’s IPO success

10 Nov 2004

The IPO of Chinese fixed line operator China Netcom has raised USD1.13 billion following a retail sale which was 27 times over-subscribed and an institutional order book which was 18 times covered according to Reuters, which quotes a source close to the deal. As a result of the popularity of Netcom’s stock the portion of the allocation set aside for Hong Kong retail investors was increased from 10% to 30%. Reuters says local analysts are predicting a 10% increase in Netcom’s share price after its debuts in New York on 16 November and in Hong Kong the following day. The sale of 1.046 billion shares – 16.2% of Netcom’s enlarged share capital – at USD8.48 per share is the largest telecoms IPO in Asia this year and the third largest IPO of a Chinese company in 2004. Netcom is valued at around USD6.9 billion.

China, China Netcom