Original title: China Mobile plans to raise 56 billion yuan to gather A shares with China Unicom and China Telecom Source: International Finance News
The “meeting” of the three major domestic operators in A shares may be just around the corner. On the evening of August 18, the Securities Regulatory Commission disclosed China Mobile’s prospectus. China Mobile’s IPO plans to raise 56 billion yuan, and the sponsors are CICC and CITIC Securities. If China Mobile’s return to A is successfully implemented, together with the upcoming China Telecom, the three major operators will gather in A shares.
Choose the 200 billion threshold
The submission draft shows that China Mobile is a world-leading communications and information service company, committed to providing a full range of communications and information services for individuals, families, government and enterprises, and emerging markets. After more than two decades of development, China Mobile has built a high-speed, mobile, secure, and ubiquitous information infrastructure that benefits one-fifth of the world’s population. Its business covers more than 200 countries and regions around the world, serving 946 million mobile customers across the country and 2.05 100 million family customers, 15.53 million government and corporate customers.
Business summary data source: declaration draft
In terms of network construction, as of the end of June 2021, China Mobile has opened 5.28 million base stations, and the total number of base stations ranks first in the world. Among them, 4G base stations amount to 3.32 million, accounting for about one-third of the total number of 4G base stations in the world; 5G base stations are 500,000.
In terms of customers, as of the end of June 2021, China Mobile had 946 million customers and 251 million 5G package customers, both ranking first in the world.
In terms of financial data, China Mobile’s operating revenues from 2018 to 2020 and the first half of 2021 are respectively 736.818 billion yuan, 745.917 billion yuan, 768.07 billion yuan, and 443.647 billion yuan, and net profits attributable to the parent are 116.699 billion yuan and 106.325 billion yuan respectively. 107.837 billion yuan, 59.118 billion yuan.
Customer summary data source: declaration draft
In terms of shareholding structure, the declaration draft shows that China Mobile BVI was registered and established in the British Virgin Islands in 1997. It directly holds 72.72% of China Mobile’s shares and is the company’s controlling shareholder. China Mobile Group, through its wholly-owned subsidiary China Mobile (Hong Kong) Group, holds 100% of the shares of China Mobile BVI and is the actual controller of the company. China Mobile Group is 90% and 10% held by the State-owned Assets Supervision and Administration Commission of the State Council and the National Council for Social Security Fund respectively.
Since China Mobile is a red-chip company that has already been listed overseas, the listing criteria selected for the return to A this time is “the market value is not less than 200 billion yuan.”
Listing standard data source: application draft
Plan to raise 56 billion yuan
In this IPO, China Mobile plans to raise 56 billion yuan. China Telecom, which is about to go public on the A-share market, has a proposed fundraising amount of 54.4 billion yuan, and China Mobile has an additional 1.6 billion yuan. In addition, the total investment of China Mobile’s proposed fund-raising projects is 156.9 billion yuan, which is 54.8 billion yuan more than the total investment of China Telecom’s IPO.
As of August 18, 2021, only 4 A-share IPOs have raised funds exceeding 56 billion yuan, namely Agricultural Bank of 68.529 billion yuan, 66.8 billion yuan of PetroChina, 66.582 billion yuan of China Shenhua, and 58.05 billion yuan. Construction Bank. Second only to China Construction Bank is SMIC with 53.23 billion yuan, which is still far from 56 billion yuan. China Mobile is expected to become the fifth in A-share IPO funds.
It is reported that the funds to be raised for China Telecom’s main board IPO will be used in three areas, namely 5G industrial Internet construction projects, cloud-network integration new information infrastructure projects, and cloud-network integration new information infrastructure projects.
The funds raised by China Mobile’s main board IPO will be used in five areas, namely 5G boutique network construction projects, cloud resources new infrastructure construction projects, gigabit smart home construction projects, smart middle-station construction projects, and new generation information technology research and development. And the digital intelligence ecological construction project.
Data source of fundraising project summary: application draft
The total investment in the 5G boutique network construction project is 98.3 billion yuan, and 28 billion yuan will be used to raise funds. The construction period of the project is 2 years. It is estimated that no less than 500,000 5G base stations will be built from 2021 to 2022; the construction of a 5G SA core network and network cloud resource pool can meet the business needs of 350 million 5G SA users and the needs of 20 million industry users .
Data source of project progress summary: application draft
The cloud resources new infrastructure construction project has a total investment of 16.1 billion yuan, and 8 billion yuan will be used to raise funds. The construction period of the project is 3 years. China Mobile expects to add 174,000 servers from 2021 to 2023. By 2023, the province coverage of mobile cloud will reach more than 95%.
The total investment of the new generation of information technology research and development and digital intelligence ecological construction projects is 15.9 billion yuan, which is only 200 million yuan less than the cloud resources new infrastructure construction project, and it is planned to use 10 billion yuan of raised funds. The project will focus on artificial intelligence, Internet of Things, cloud computing, big data, edge computing and other key areas and key links to carry out technological research, carry out forward-looking research on the new generation of mobile communication technologies such as 6G, and focus on the scenario-based application of CHBN in various markets Carry out business platform research and development, including industry digital platform research and development, smart home innovation business technology capability expansion, and digital content technology research and development. The investment period of the project is three years, with an investment of 3.3 billion yuan, 5.1 billion yuan, and 7.5 billion yuan respectively.
.