China Mobile debuts in Shanghai after delisting from US, Telecom News, ET Telecom
The stock jumped 9.4% before quickly cutting those gains and was more than 3% higher an hour after trading started.
The stock offering is expected to raise $ 8.8 billion after the company exercises an over-allotment option, Bloomberg News said, making it the largest on Chinese stock markets for more than a decade.
China’s largest wireless operator by revenue was pulled from the New York Stock Exchange last year, along with other state-owned telecommunications companies China Telecom and China Unicom.
This followed an executive order by former President Donald Trump prohibiting Americans from investing in a series of companies known to supply or support China’s military and security apparatus.
The group said the funds raised would go towards building 5G infrastructure, as well as “smart home” projects and other initiatives.
Some of China’s largest tech and telecommunications companies have been listed on the US stock markets for the past several decades as they sought access to new funding and more developed capital markets.
But the tide has turned as tensions between Beijing and Washington have soared in recent years.
The Chinese government has also encouraged companies to list on national stock exchanges as part of an effort to keep big tech players closer to home and help develop the country’s capital markets.
China Telecom, the country’s largest fixed-line operator, debuted in Shanghai last August after raising $ 7.3 billion when it went public.
China Unicom has listed the shares of a subsidiary in Shanghai since 2002.
In October, US officials called on China Mobile to end service in the country, ending nearly two decades of operation, in a move Beijing called “malicious removal” of Chinese companies.
The US Federal Communications Commission has stated that “Chinese government ownership and control of the company poses significant risks to national security and law enforcement.”