China Telecom Relaunches IPO in HK

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Last updated at: (Beijing Time) Wednesday, November 06, 2002

China Telecom Relaunches IPO in HK

China Telecom Corp relaunched its initial public offering (IPO) Wednesday with its global offer size cut by about 55 percent to 7.56 billion shares.

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China Telecom Corp relaunched its initial public offering (IPO) Wednesday with its global offer size cut by about 55 percent to 7.56 billion shares.

The relaunch came a week after its original IPO, which received poor response from the international investors.

In the relaunch, the fixed-line giant of the Chinese mainland will issue 377.82 million H shares to Hong Kong investors, accounting for some 5 percent of the global offer size. The Hong Kong offering will close at noon next Monday.

The international tranche opened Tuesday and book building is expected to close by 5 p.m., New York Wednesday.

The offer price remains unchanged at 1.47 HK dollars to 1.69 HK dollars while dividend payout stays at 6.5 HK cents.

Trading of its shares is due to begin on Nov. 14 in New York and a day later in Hong Kong, a week behind its original schedule.

Gross IPO proceeds are cut to between 11.18 billion HK dollars (1.43 billion US dollars) and 12.92 billion HK dollars (1.66 billion US dollars), down from the previous target of 24.86 billion HK dollars (3.19 billion US dollars) and 28.7 billion HK dollars (3.68 billion US dollars).

Because of the smaller number of shares to be issued, China Telecom's prospective earnings multiples will be slightly enhanced to between 9.6 and 11.4 times.

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