On the evening of December 13, the CSRC issued the IPO approval of China Mobile (00941. HK). China Mobile and its Underwriters will negotiate with the exchange to determine the issuance schedule and publish the prospectus.
In August this year, the CSRC accepted the application materials for China Mobile’s A-share listing. On November 4, the CSRC approved the listing of China Mobile. According to the prospectus, China Mobile plans to raise 56 billion yuan, more than 54 billion yuan of China Telecom Corporation Limited(601728) (601728. SH), the highest IPO amount of A-Shares in recent 10 years . In the list of total fund-raising of A-share new shares, China Mobile ranks fifth in fund-raising.
subscription on December 22
it is estimated that the revenue in 2021 will exceed 844.8 billion
On the evening of the 13th, China Mobile disclosed the letter of intent for the initial public offering of RMB common shares (A shares) (hereinafter referred to as the prospectus).
According to the prospectus, China Mobile plans to publicly issue no more than 845.7 million a shares, that is, no more than 3.97% of the total issued shares of the company after this offering (before exercising the over allotment option). the initial inquiry time for this issuance and listing is from December 16 to December 17, and the subscription date is December 22 .
The prospectus disclosed that as of September 30, 2021, the company’s asset liability structure remained relatively stable, with total assets of 1770.947 billion yuan, an increase of 4.63% over the end of last year; The total liabilities were 623.926 billion yuan, an increase of 8.49% over the end of last year; The shareholders’ equity attributable to the parent company was 1143.111 billion yuan, an increase of 2.65% over the end of last year.
In terms of performance, China Mobile’s operating revenue from January to September 2021 was 648.630 billion yuan, an increase of 12.92% over the same period last year; The net profit was 87.088 billion yuan, an increase of 6.59% over the same period last year. Source: China Mobile prospectus
In addition, according to the business situation during and after the reporting period, China Mobile has estimated the performance of 2021, it is estimated that the operating revenue in 2021 will be about 844.877 billion yuan to 852.558 billion yuan , with a year-on-year increase of about 10% to 11%; The net profit attributable to the shareholders of the parent company was about 114.307 billion yuan to 116.464 billion yuan, with a year-on-year increase of about 6% to 8%; After deducting non recurring profits and losses, the net profit attributable to shareholders of the parent company was about 107.285 billion yuan to 109.328 billion yuan, with a year-on-year increase of about 5% to 7%.
As of September 30, China Mobile had 956 million customers, making it the telecom operator with the largest number of users in the world . More than China Telecom Corporation Limited(601728) 370 million households and China United Network Communications Limited(600050) 316 million households.
China Mobile has 331 million 5g package customers and 160 million 5g network customers, ranking first among the three operators in terms of profitability and business scale.
According to the prospectus, China Mobile completed its initial public offering and listing on the New York Stock Exchange and the Hong Kong Stock Exchange in October 1997. At present, the company has been delisted from the New York Stock Exchange on May 18, 2021.
What will be the issue price of ?
Will break like telecommunications?
Guosen Securities Co.Ltd(002736) said that China Mobile’s operating revenue maintained a steady growth in the third quarter, basically in line with expectations. The company promoted the integrated development of “cloud + Network + dict”. In the first three quarters, the dict business achieved a revenue of 48.9 billion yuan, maintaining a rapid growth; Mobile business benefited from 5g promotion and maintained steady growth; The home business benefited from the broadband upgrade and maintained a good growth rate.
The prospectus shows that China Mobile will focus on the construction of 5g boutique network. With the goal of forging a 5g high-quality network with “national coverage, advanced technology, excellent quality and global leadership”, the company speeds up the large-scale deployment of 5g network and the three-dimensional construction of “point, line and plane”, gives play to the multi frequency synergy advantages of 2.6GHz, 4.9ghz and 700MHz, builds no less than 500000 5g base stations, and builds 5gsa core network and network cloud resource pool at the same time, Support the scale development of mass market and vertical industries, and help the company fully implement the “5g +” plan.
As for the issue pricing, Anxin International Securities believes that the issue pricing may be about 1 times the price to book ratio. With reference to the price of China Telecom Corporation Limited(601728) A-Shares listed at 4.53 yuan, the price is similar to the price of the company’s net assets per share. Considering the influence of various factors, if the price of China Mobile’s A-share listing is about 1 times the price to book ratio, the company’s bidding price may be about 52.9-55.8 yuan . There is a certain premium rate with the current Hong Kong stock price.
From the performance of China Telecom Corporation Limited(601728) back to a, it achieved an increase of about 35% on the first day of listing, but the stock price has remained depressed since then. On September 24, China Telecom Corporation Limited(601728) fell below the issue price of 4.53 yuan shortly after opening. As of the closing on December 13, China Telecom Corporation Limited(601728) share price was still lower than the issue price. This has also triggered some concerns about the stock price trend of China Mobile back to a in the current market.
At the same time, there have been frequent IPO breaks recently, including Jiangsu Hualan New Pharmaceutical Material Co.Ltd(301093) , Rumere Co.Ltd(301088) , Wayz Intelligent Manufacturing Technology Co.Ltd(688211) , Cofoe Medical Technology Co.Ltd(301087) , Sinocat Environmental Technology Co.Ltd(688737) .
According to Fu Liang, a telecom analyst at China business, this year’s is not a good time for listing, especially for large cap stocks such as China Telecom Corporation Limited(601728) and China Mobile, and two large cap stocks with the same theme , China Mobile has opened the listing interval with China Telecom Corporation Limited(601728) as far as possible.
Fu Liang mentioned that the break only affects the transaction price and does not affect the capital amount of the company. The future stock price needs to be proved by the enterprise itself. He believes that China Mobile is not short of money. Its listing purpose is not financing, but to share the company’s development income with users. At the same time, listing in A-Shares is conducive to enhancing China’s understanding of its business.
Earlier, on August 12, when asked about matters related to the A-share listing, Yang Jie, chairman of China Mobile, said that returning to a will not only effectively promote the development of the company, but also give customers more opportunities to share the benefits brought by the company’s growth and development. “Because our customer market is basically in China, if we come back, the capital market and customer market will completely coincide.” At the same time, he believes that returning to a can better promote the transformation and development of the company.
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(Daily Economic News)
