Ten investors have pledged funding to the tune of $1.4 billion for China Tower as the infrastructure company lines up its listing on the Hong Kong stock exchange.
Hillhouse Capital Group will invest $400 million, which was the largest amount tabled. US-based Och-Ziff Capital Management will also be a key investor, along with companies controlled by Alibaba and China National Petroleum Corporation.
China Tower had been aiming to generate $10B via its IPO, but has now revised its expectations down to $8.7B. While this is substantially lower than its initial expectations, this figure would still make the offering the world’s largest since 2014, and substantially higher than Chinese smartphone manufacturer Xiaomi’s recent IPO, which fell short of expectations.
The infrastructure firm is expected to make 25% of its share capital available in the IPO. With over 1.87 million sites, China Tower is the largest telecom tower firm internationally, having been created in 2015 by combining assets from China’s Big Three operators, all of which hold significant stakes in the tower company.
