China Telecom may become the largest A-share IPO in the past ten years, raising more than SMIC by 54.4 billion yuan

On July 30, China Telecom Co., Ltd. (hereinafter referred to as “China Telecom”) updated its prospectus and announced the IPO issuance arrangement and preliminary inquiry announcement. According to China Telecom’s previous disclosure, the listing plans to raise 54.4 billion yuan. If calculated on this basis, it will exceed the 53.2 billion yuan of SMIC’s IPO and become the highest A-share IPO fundraising in the past decade.

According to the latest announcement, China Telecom intends to issue no more than 10.396 billion shares in the A-share IPO, accounting for no more than 11.38% of the company’s total share capital after the issuance (before the over-allotment option is exercised), all of which are new public offerings, no Set up the transfer of old shares. If the A-share issuance is successful, China Telecom will become the second “A+H” listed company among the three major operators after China Unicom.

In the latest prospectus, China Telecom divides its main businesses into four categories, namely mobile communication services, fixed network and smart home services, industrial digitization and other businesses, which will account for each of China Telecom’s total revenue in 2020. were 45.02%, 27.96%, 21.53% and 1.35%.

The purpose of fundraising disclosed in the prospectus shows that China Telecom plans to invest 21.4 billion yuan in 5G industrial Internet construction projects in the next three years, of which 11.4 billion yuan will come from this initial fundraising, mainly including focusing on 5G industrial Internet-related wireless networks, core Network, MEC, bearer network and other fields investment and construction.

According to the data, China Mobile, China Unicom and China Telecom, the three major operators in China, were listed on the New York Stock Exchange in the form of American Depositary Receipts (ADR) in 1997, 2000 and 2002, and were listed on the Hong Kong Stock Exchange at the same time. Listed, realized the simultaneous listing of “Hong Kong + US” capital markets, and became the first state-owned enterprise to go out of China. In January this year, the three companies were forced to delist from the New York Stock Exchange; on March 9, China Telecom announced that it planned to apply for listing on the main board of the Shanghai Stock Exchange; on July 22, China Telecom held a first meeting.

In addition, China Mobile also applied for A-share issuance and listing in May. The raised funds are planned to be used for 5G boutique network construction projects, new cloud resource infrastructure construction projects, gigabit smart home construction projects, smart middle-station construction projects, and new-generation information technology. R&D and digital intelligence ecological construction projects.

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