China Telecom aiming to raise upwards of USD7.3bn through Shanghai IPO

9 Aug 2021

Chinese full-service provider China Telecom has finalised plans for its initial public offering (IPO) on the Shanghai Stock Exchange (SSE), through which the operator is aiming to raise CNY47.1 billion (USD7.3 billion). The operator plans to issue 10.396 billion A shares with an over-allotment option lifting the potential total to 11.956 billion, representing between 11.38% and 12.87% of the company’s total share capital. The price per share has been set at CNY4.53. As previously reported by TeleGeography’s CommsUpdate, Telecom is planning to use the funds to bankroll its 5G ‘Industrial Internet Construction’ project and cloud-network integration as well as research and development of ‘sci-tech innovation’.

The operator had announced its intention to stage an offering on the bourse in March this year following the delisting of its American Depositary Shares (ADSs) from the New York Stock Exchange (NYSE) in January, in line with a November 2020 executive order restricting American investment in entities that the US government considers to be linked to the Chinese military.

China, China Telecom Corporation