China Tower, world’s largest mobile phone tower company, to kick off year’s biggest IPO next Wednesday
Beijing-based company aims to raise between US$8 billion and US$10 billion
China Tower, the world’s biggest operator of mobile phone towers, will launch its share sale offer to raise between US$8 billion and US$10 billion next Wednesday, making it the world’s biggest initial public offering so far this year.
The Beijing-based company, which was formed in 2014 through the merger of the transmission operations of China Mobile, China Unicom (Hong Kong) and China Telecom, will launch investor road shows on Monday and its IPO will begin on Wednesday, according to a source familiar with the plan.
The retail market response may not be strong due to a combination of factors
“The initial target for China Tower is to raise US$10 billion, but the fundraising size could be smaller. Everything is not definitive given the current market uncertainties,” said another source, adding that the company has been closely watching market sentiment and that changes could be made depending on the response from investors.
International Financing Review reported on Wednesday the mobile phone infrastructure company was planning to raise up to about US$8.8 billion at a valuation of up to US$35 billion, citing people close to the deal. The addition of a standard green shoe option of 15 per cent of the base deal size will bring the proceeds to about US$10 billion, the report said.
The offering will place China Tower ahead of Xiaomi, the world’s fourth-largest smartphone maker, as the world’s biggest IPO this year. Xiaomi raised US$5.4 billion through its listing after the green shoe option was exercised. China Tower’s IPO will also be the fourth-largest flotation in Hong Kong in three decades.
Alibaba Group Holdings, which owns the South China Morning Post , still holds the world record for IPO size with its US$25 billion New York float in 2014.
