China Telecom, one of the country's three major telecom operators that exited the New York Stock Exchange earlier this year, is set to raise up to 54.2 billion yuan (US$8.5 billion) as one of the biggest IPOs in China this year after setting its initial public offering price.
According to Chinese media reports, the carrier set its IPO price at 4.53 yuan and plans to take online subscriptions on the Shanghai Stock Market.
Through the IPO, China Telecom plans to finance a 5G industrial Internet project, cloud business expansion, and other innovations, the company said.
Incidentally, China Telecom aims to raise 47.1 billion ($7.3 billion) according to a filing with the Shanghai Stock Exchange on Friday. The shares will be priced at 4.53 yuan. If an over-allotment option was exercised, the Shanghai IPO would raise more than 54.2 billion yuan, market analysts said.
The offering marks the world's largest new listing in more than a year, exceeding the $6.3 billion IPO by short video platform Kuaishou in February. It will also be the fifth-largest IPO in the history of the A-share market, highlighting the deep pool of domestic capital the telecom operator can access.
China Telecom, China Mobile, and China Unicom will be listed on the Chinese market this year after they were delisted from United States markets. They are all currently listed in Hong Kong.
China Telecom was delisted by the New York Stock Exchange in January along with fellow state-owned telecoms firms China Mobile and China Unicom following an executive order by former President Donald Trump.
China Mobile announced on May 17 it will list on the A-share market. China Unicom debuted on the A-share market in 2002.