TaiShang
ELITE MEMBER
- Joined
- Apr 30, 2014
- Messages
- 27,848
- Reaction score
- 70
- Country
- Location
(Yicai Global) March 10 -- China Telecom has applied for a secondary listing on the Shanghai Stock Exchange, just two months after the state-owned carrier was removed from the New York bourse after being added to a US blacklist, in a move that could see it earn a windfall of USD4 billion.
China Telecom plans to issue up to 12.09 billion shares on the Shanghai bourse, the Beijing-based firm said at its 2020 earnings report conference yesterday. This will amount to less than 13 percent of the company’s total issued share capital, it said, without giving any indication of pricing.
However, based on the value of its Hong Kong-listed stock which was trading at HKD2.68 (USD0.35) apiece at 1:30 p.m. China time today, the carrier could raise over USD4 billion.
The funds will be used to finance fifth-generation industrial internet projects, cloud network convergence infrastructure and further research and development, it said.
Listing in Shanghai is an appropriate decision made at an appropriate time, said Chairman Ke Ruiwen. The move comes two months after China Telecom, along with competitors China Unicom and China Mobile, were delisted from the New York exchange after an executive order from the Trump administration issued in November last year barred US investment in companies considered to have links with China’s military.
Big Plans
The firm plans to double the number of 5G base stations in use this year to 700,000 from last year’s 380,000 and its 5G network should cover all counties and most towns in the country by the end of the year, Ke said. It will spend CNY39.7 billion (USD6 billion) on developing its 5G infrastructure, similar to the amount spent last year.
The current shortage of chips used in 5G mobile devices should not affect China Telecom, which is in close communication with its suppliers, and the firm expects to meet its targets as scheduled this year, Deputy General Manager Liu Guiqing said.
China Telecom posted solid results for 2020 at the earnings conference. Profit rose 1.6 percent from the year before to CNY20.9 billion (USD3.2 billion). Revenue jumped 4.7 percent to CNY393.6 billion (USD60.5 billion)
It commanded 24.6 percent of the country’s 5G market with 86.5 million users. The number of subscribers to its mobile services increased by 15.45 million to 351 million, accounting for 22 percent market share.
China Telecom plans to issue up to 12.09 billion shares on the Shanghai bourse, the Beijing-based firm said at its 2020 earnings report conference yesterday. This will amount to less than 13 percent of the company’s total issued share capital, it said, without giving any indication of pricing.
However, based on the value of its Hong Kong-listed stock which was trading at HKD2.68 (USD0.35) apiece at 1:30 p.m. China time today, the carrier could raise over USD4 billion.
The funds will be used to finance fifth-generation industrial internet projects, cloud network convergence infrastructure and further research and development, it said.
Listing in Shanghai is an appropriate decision made at an appropriate time, said Chairman Ke Ruiwen. The move comes two months after China Telecom, along with competitors China Unicom and China Mobile, were delisted from the New York exchange after an executive order from the Trump administration issued in November last year barred US investment in companies considered to have links with China’s military.
Big Plans
The firm plans to double the number of 5G base stations in use this year to 700,000 from last year’s 380,000 and its 5G network should cover all counties and most towns in the country by the end of the year, Ke said. It will spend CNY39.7 billion (USD6 billion) on developing its 5G infrastructure, similar to the amount spent last year.
The current shortage of chips used in 5G mobile devices should not affect China Telecom, which is in close communication with its suppliers, and the firm expects to meet its targets as scheduled this year, Deputy General Manager Liu Guiqing said.
China Telecom posted solid results for 2020 at the earnings conference. Profit rose 1.6 percent from the year before to CNY20.9 billion (USD3.2 billion). Revenue jumped 4.7 percent to CNY393.6 billion (USD60.5 billion)
It commanded 24.6 percent of the country’s 5G market with 86.5 million users. The number of subscribers to its mobile services increased by 15.45 million to 351 million, accounting for 22 percent market share.
