Recently, we have approved the initial application of the following enterprises according to legal procedures: China Mobile Co., Ltd. The above-mentioned enterprises and their Underwriters will negotiate with the exchange to determine the issuance schedule and publish the offering documents.
The largest IPO of A-Shares in recent ten years has come! China Mobile ranks fifth in the history of raising 56 billion yuan. Who are the top four?
The CSRC approved the initial application of China Mobile Co., Ltd. in accordance with legal procedures.
Earlier, on August 18, China Mobile announced that the application materials for the company’s initial public offering of A-Shares had been accepted by the CSRC. On the same day, China Mobile announced its A-share IPO prospectus, which is planned to be listed on the main board of Shanghai Stock Exchange. It plans to publicly issue no more than 965 million A-shares and raise 56 billion yuan. According to the prospectus, the raised funds will focus on “new infrastructure, new elements and new kinetic energy” to promote the transformation of digital intelligence and build a new digital intelligence ecology, which will be used for five projects, including 5g high-quality network construction, new infrastructure construction of cloud resources, Gigabit smart home construction, smart middle platform construction, new generation information technology R & D and digital intelligence ecology construction, with a total investment of 156.9 billion yuan, The amount of raised funds to be invested is 56 billion yuan.
China Mobile’s fund-raising amount of 56 billion yuan will be second only to China Construction Bank Corporation(601939) , ranking fifth in the history of a shares, and is expected to become the largest IPO of A-Shares in recent ten years. after the return of mobile, the three major telecom operators will fully gather in the A-share market.
In terms of performance, in the first three quarters, China Mobile’s operating revenue was 648.6 billion yuan, an increase of 12.9% over the same period last year; The profit attributable to shareholders was 87.2 billion yuan, an increase of 6.9% over the same period last year. Securities companies said that the performance of China Mobile in the first three quarters of fiscal year 2021 was in line with expectations.
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 5g boutique network construction. 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 of may be about 1 times the price book ratio. refer to the pricing of China Telecom Corporation Limited(601728) A-share listing of 4.53 yuan, which 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. (source: financial Associated Press)
extended reading
China Mobile: it plans to publicly issue no more than 845.7 million A-share common shares
IPO express | SF landed on the HKEx today in the same city; Purchase next Wednesday! China Mobile’s return to A-share IPO approval was approved and issued by the CSRC
(website of CSRC)
