Almost at the same time that China Telecom announced the process of returning to A, China Mobile also got wind of returning to A. Sources say China Mobile is considering an A-share listing after the US delisting, although the sources also point out that the listing plans are at an early stage.
The pace of China Telecom’s return to A is accelerating.
On March 17th, following the announcement on March 9th that China Telecom planned to apply for issuing A-shares and listing on the main board of the Shanghai Stock Exchange, China Telecom announced the new progress of returning to A in the Hong Kong Stock Exchange again: the company proposed to issue RMB common shares (A-shares) for initial public offering and listing on the main board of the Shanghai Stock Exchange.
Announcements pointed out that the company will hold A special general meeting of shareholders, domestic share class shareholders meeting and H share class shareholders meeting on April 9, to discuss China Telecom Limited’s initial public offering of RMB common shares (A shares) and other matters.
Not only China Telecom has A move, China Mobile also spread back to the A action. China Mobile Ltd is considering A return to the A-share market, A source familiar with the matter said on March 16. However, the 21st Century Economic Report reporter from China Mobile learned that there is currently no new news back to A.
“(current) telecom A is the most appropriate time to back,” in the 21st century economic report reporter interview, executive director of digital economy research institute at zhongnan university of economics and plate and says, “in addition to the United States retreat city, the telecom industry itself is entering A 5 g era, China telecom business is from the overall development of the fixed-line business in the field of mobile Internet, this is the new growth of China telecom.”
Overseas return of operators
According to China Telecom’s announcement, the number of A-shares issued in the public offering will not exceed 13 percent of the total issued share capital, or 12.0933 billion shares. The Company may authorize the Lead Underwriter to exercise an overallotment option, subject to regulatory and regulatory conditions, to oversell not more than 15% of the number of A-shares to be issued.
According to China Telecom, the IPO will be used for projects related to the company’s main business, including 5G industry Internet construction projects, cloud network integration new information infrastructure projects and scientific and technological innovation research and development projects. The initial investment of raised funds in the next three years will be 11.4 billion yuan, 27 billion yuan and 16 billion yuan respectively.
In terms of 5G industry Internet construction projects, China Telecom said that it would focus on the investment and construction of wireless network, core network, MEC, carrier network and other fields related to 5G industry Internet, build a new information infrastructure that is agile, intelligent, secure, reliable, independent and controllable, and provide end-to-end customized services for customers in key industries.
According to the internal analysis of China Telecom, this return to A is not only A problem of capital level, but also A change of China Telecom’s strategy level.