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Nearly a year after being expelled from Wall Street by the Trump administration, Chinese telecom operator China Mobile plans to go public on the Shanghai Stock Exchange to raise 6.8 billion euros. This will be China’s largest equity financing in more than a decade.
In the context of continuing tensions in Sino-US relations, former US President Trump issued an executive order before leaving office prohibiting Americans from investing in companies suspected of cooperating with China’s military, intelligence, and security services. In accordance with the administrative order, the New York Stock Exchange delisted three companies included in the investment blacklist: China Mobile, China Unicom (Hong Kong) and China Telecom in January last year.
Calculated by the number of users, China Mobile is the world‘s largest mobile communications operator. After being delisted by the NYSE, the company has been considering returning to the local listing of Shanghai A shares. Before making a decision, China Mobile and other three Chinese telecommunications operating companies failed in their negotiations for being delisted by the New York Stock Exchange.
China Mobile announced on Tuesday that it plans to go public in Shanghai at a price of 57.58 yuan (8 euros) per share. The number of publicly issued A shares will not exceed 845.7 million shares. The financing scale will be about 6.8 billion euros. The biggest IPO in ten years.
This financing amount is much higher than the 4.4 billion euro scale envisaged by the market so far.
China Mobile did not specify a specific date for listing.
Agence France-Presse pointed out that in the context of tensions in Sino-US relations, Beijing officials are encouraging Chinese companies to withdraw from foreign financial markets and preferentially choose domestic listings for financing. Two other Chinese telecom operators that were delisted with China Mobile: China Telecom was listed in Shanghai in August last year and raised a total of 6.5 billion euros. China Unicom has been listed in Shanghai through one of its subsidiaries since 2002.
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