China Telecom Applies for Issuance of 15.96 Bn Shares of H Stock in US

Home>>Business

Last updated at: (Beijing Time) Wednesday, September 25, 2002

China Telecom Applies for Issuance of 15.96 Bn Shares of H Stock in US

DISCUSSION

CHINESE

SEND TO FRIEND

America's Securities Exchange Committee (SEC) told in a bulletin on Tuesday that China's largest fixed phone operator, China Telecom Corp. Ltd has applied for the issuance of 16.8 billion shares of H stock. The document shows that 15.96 billion will be sold in the US and another 840 million shares to be issued in Hong Kong.

But the document did not reveal the price of each share. Sources said that China Telecom hopes to sell 20 percent of its stock to raise some 3 billion US dollars by global issuance, another 10 percent of shares will be issued to individual investors.

According to report, all the funds raised will be used for expanding and updating the company's network infrastructure, and development of its technology and projects.

Merrill Lynch & Co., Morgan Stanley and China International & Capital Corp. � a Beijing-based joint venture between Morgan Stanley and China Construction Bank � are joint global coordinators for the offer.

Last week, China's No. 2 mobile telecommunications carrier, China Unicom, launched a domestic initial public offering in Shanghai intended to raise about US$1.4 billion.

The IPO by the Hong Kong and New York-listed carrier, the second largest ever for China, was the first by an overseas-listed company of so-called "A shares," yuan-denominated shares available only to Chinese investors.

In recent years the Chinese government has broken up a monopoly once held by state-run China Telecom in order to build up China's telecoms industry through competition as it joins the World Trade Organization and begins to allow in foreign rivals.

The country will soon have four full-service telecoms providers � China Telecom, Unicom Group, China Netcom Communications and China Mobile Communications. All are tapping international or domestic financial markets for funding to build up their networks.

Questions?Comments? Click here

China Telecom to Launch First Ever US-based Company

China Unicom's Domestic IPO Excites Investors

Chinese Telecom Giant to Go Public

China to Build up Oil Stockpile ( 19 Messages)

E-government, A Hot Cake on China's IT Markets ( 4 Messages)

Jiang Urges Army to Prepare for Military, Anti-Terror Struggles ( 12 Messages)

Source of Cult Members' TV Hijacking Pinpointed ( 5 Messages)

Popularizing Mandarin: a Long Way to Go ( 30 Messages)

"Whoever Plays with Fire Gets Burnt": Commentary ( 3 Messages)