China Telecom Faces Largest IPO This Year
China Telecom faces the largest IPO this year. With its IPO in Shanghai, the company could raise to 54 billion yuan. The upcoming listing comes months after China Telecom’s listing in New York was delisted due to disagreements between Beijing and Washington.
China Telecom is the largest provider of fixed telephony in China. With its share offering, the company would surpass the previous IPO of TikTok rival Kuaishou Technology in revenue. That company raised more than 4.5 billion pounds with its IPO in Hong Kong in February.
The proceeds from the listing of China Telecom in Shanghai will be used, among other things, to improve 5G and the cloud network infrastructure.
China Telecom was delisted in January by the New York Stock Exchange. The listings of other telecom companies owned by the Chinese state, China Mobile and China Unicom, were also delisted by order of former President Donald Trump. The companies were considered a threat to US national security.
In recent decades, many of China’s largest tech and telecom companies have listed their shares on the more developed US stock markets. But lately, they have been increasingly urged to list on the domestic stock exchanges in Shanghai, Shenzhen and Hong Kong. This movement is also fueled by an ongoing government campaign to strengthen control over tech giants.