China Mobile aims to raise US$8.62bn in mainland’s biggest IPO

China Mobile aims to raise US$8.62bn in mainland’s biggest IPO

Following in the steps of China Telecom, another Chinese state-owned telecom behemoth and the world’s biggest mobile operator, China Mobile, is set to list on the Shanghai Stock Exchange soon, in what would be the biggest IPO for the A-share market in nearly 10 years.

China Mobile filed a prospectus for its listing with the China Securities Regulatory Commission (CSRC) last week.

According to local media, its targeted sum is slightly higher than China Telecom aimed for in its listing, with the latter’s shares set to begin public trading in the country imminently.

The telco did not share the details of that prospectus in its English language statement, but according to the South China Morning Post, it aims to raise around 56 billion yuan (US$8.62 billion) from the flotation, which will be the largest in mainland China in over a decade.

China Mobile said that it would use the funds for “new infrastructure, new factors of production and new drivers,” and to advance the development of infrastructure, 5G networks, and cloud computing resources.
The issued shares, which will be equivalent to 4.5% of China Mobile’s enlarged capital base. China Mobile may increase its offering by 15% if its two sponsors, CICC and Citic Securities, exercise an overallotment option, also known as a “greenshoe” option, in the event of strong demand.

The telecoms giant has nearly 1.8 trillion yuan in total assets, while telecommunications services revenues reached 393.2 billion yuan in the first half of 2021, rising by 9.8% compared to the same period last year to hit a ten-year high.

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