China Telecom plans to raise funds in Shanghai bourse after New York delisting
- China Telecom plans a secondary flotation in Shanghai to raise funds for 5G, industrial internet, and research and development efforts
- The company expects to operate 700,000 5G base stations by the end of this year
The Hong Kong-listed company, which is controlled by state-owned China Telecommunications Corp, proposes to issue up to 12.09 billion yuan-denominated shares – equivalent to 13 per cent of the enlarged capital base – on the Shanghai Stock Exchange, according to Ke Ruiwen, the firm’s chairman and chief executive, in a conference call for its 2020 financial results announcement on Tuesday, after the market closed.
China Telecom did not disclose pricing for the new shares. In Hong Kong, the company’s stock jumped as much as 9.8 per cent on Wednesday, as investors welcomed news of its planned secondary listing.
China Telecom may increase its offering by 15 per cent upon exercising its over-allotment “greenshoe” option, according to the company’s filing in Hong Kong on Tuesday.
“The final size of the listing is dependent on the company’s need for capital, regulatory approval and market situation at the time of listing,” Ke said.
He indicated that the proceeds will be used by the company for its 5G and industrial internet initiatives, research and development, and integration of cloud computing and telecoms infrastructure.
