China Mobile Gains in Hong Kong After Revealing Plans to Float in Shanghai
Tang Shihua
DATE:  May 18 2021
/ SOURCE:  Yicai
China Mobile Gains in Hong Kong After Revealing Plans to Float in Shanghai China Mobile Gains in Hong Kong After Revealing Plans to Float in Shanghai

(Yicai Global) May 18 -- China Mobile Communications Group’s stock gained in Hong Kong after the country’s biggest mobile operator unveiled plans to list in Shanghai as the New York Stock Exchange proceeds to remove all three Chinese state-owned carriers following a US investment ban.

Shares of China Mobile [HKG: 0941] ended 2.7 percent higher today at HKD50.10 (USD7.80), after earlier climbing as much as 4.8 percent. The benchmark Hang Seng Index rose 1.4 percent.

China Mobile will issue up to 965 million new shares, accounting for about 4.5 percent of its common stock outstanding, the Beijing-based company said in a statement yesterday. It is expected to raise about HKD47.1 billion (USD6.1 billion) based on yesterday’s closing price of HKD48.80 in Hong Kong.

China Mobile follows compatriot rivals China Telecom and China Unicom in heading for the Shanghai Stock Exchange. China Telecom said in March that it plans to list on the SSE. China Unicom has traded on the bourse since 2002.

Their New York-listed shares have been suspended from trading since January. Earlier this month, the three firms were unsuccessful in appealing their removal from the NYSE following investment restrictions ordered by former US President Donald Trump last year.

The offering should help accelerate digital transformation and introduce new strategic investors to China Mobile, the firm said. Proceeds of the share sale will go to fifth-generation wireless networks, cloud infrastructure, its smart homes business, data middle platform construction, research and development of new information technologies, and digital intelligence.

China Mobile is leading in next-gen internet. Its 5G data plan subscribers reached 189 million as of March, surpassing China Telecom’s 110 million and China Unicom’s 91.9 million.

It has built more than 460,000 5G base stations and offers fast connectivity in the key areas of more than 300 Chinese cities, Chairman Yang Jie said yesterday.

Editor: Emmi Laine, Xiao Yi

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Keywords:   Secondary Listing,Mobile Communication,Service Provider,China Mobile