China Communication Services Co. Ltd. completed its initial public offering (IPO) in Hong Kong on Friday raising 2.84 billion HK dollars through the sale of 1.29 billion H shares.

It is the first production services company in China's communication sector to list on the Hong Kong stock exchange.

The company was incorporated in August this year with registered capital of 3.96 billion yuan (495 million U.S. dollars) and net assets of 6.01 billion yuan. The company is a subsidiary of China Telecom.

The company mainly does construction work for telecommunication operators including China Telecom, China Mobile, China Unicom and China Netcom. It is also a service provider for government agencies, equipment manufacturers and many large enterprises.

The listing of China Communication Services in Hong Kong provides a good example of how a large state-owned enterprises (SOEs) such as China Telecom can reform its subsidiaries, said sources with the State-owned Assets Supervision and Administration Commission of the State Council.

China Telecom, the country's leading telecommunication operator, began restructuring in August 2000, creating 31 new companies at the provincial level.

Six of the 31 companies' service sectors were amalgamated to form China Communication Services during the telecommunication giant's next rounds of restructuring that began in October 2005.

Source: Xinhua