China Tower IPO raises USD7bn

6 Aug 2018

China Tower raised around HKD54.3 billion (USD6.9 billion) through its initial public offering (IPO) last week, after pricing its shares at the low end of the marketed range, Bloomberg reports. A total of 4.31 billion shares were sold at HKD1.26 apiece, having previously been marked at HKD1.26 to HKD1.58 each. The company plans to use around 60% of the proceeds for CAPEX, primarily for the erection of new towers and improving existing sites, including the construction of new 5G networks. The IPO followed on the heels of another high-profile telecom IPO on the Hong Kong bourse, that of smartphone manufacturer Xiaomi; both IPOs priced low, reportedly impacted by concerns over a potential trade war between China and the US in the near future.

China, China Tower