China Mobile to raise US$8.8B in Shanghai listing

China Mobile to raise GBP6.7bn in Shanghai listing

China Mobile, the world's largest mobile network operator, aims to raise as much as 56 billion yuan (GBP6.7bn, USD $8.8 billion) when it lists its shares in Shanghai following the country's biggest public offering in a decade.

 

In what could be the world’s second-largest initial public offering (IPO) this year, China Mobile will sell between 845.7 million and 972.6 million shares, inclusive of an over-allotment option to meet strong investor demand, at 57.58 yuan each in Shanghai, according to an exchange filing.

The offer price represents a premium of about 52% over China Mobile’s Hong Kong-listed stock based on its closing price of HK$46.45 on Friday. The stock will trade under the 600941 code in Shanghai.

This will make the offering the largest in China this year if it is completed next week, surpassing the 54.4 billion yuan raised by peer China Telecom in August. Both state-owned companies were forced off the New York Stock Exchange in May as a result of a move by the Trump administration.

According to Nikkei Asia, in response to a question whether China Mobile could sustain the high premium it is seeking in Shanghai, Chairman Yang Jie emphasised the operator's high profits and dividend payouts, which have made it one of the highest yielding stocks in Hong Kong.

CICC and Citic are the joint sponsors of China Mobile’s stock offering.

China Mobile is the world’s biggest telecommunications operator, with 946 million customers and broadband connections in 205 million households in 2020.

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