China Mobile announced on December 21 that the inquiry of the company’s A-share IPO has been completed, and the determined issuance price is 57.58 yuan / share. The diluted P / E ratio of 2020 corresponding to the issue price is 12.02 times. According to the issuance arrangement, China Mobile will make offline and online subscription on December 22.
The announcement shows that the number of shares issued by China Mobile a is 846 million shares, accounting for about 3.97% of the total share capital after issuance. If the “green shoes” is fully exercised, the total number of shares issued will be expanded to 973 million shares, accounting for about 4.53% of the total share capital after issuance. Based on the issue price of 57.58 yuan / share, if the over allotment option, namely “green shoes”, is fully exercised, China Mobile is expected to raise a total of 56 billion yuan. According to statistics, China Mobile has become the largest A-share IPO project in recent ten years.
According to the prospectus, the funds raised in this offering will focus on “new infrastructure, new elements and new kinetic energy” and invest in “5g boutique network construction project”, “cloud resources new infrastructure construction project”, “Gigabit smart home construction project”, “smart middle platform construction project” and “new generation information technology R & D and digital intelligence ecological construction project”.
In terms of financial data, China Mobile achieved a net profit attributable to the parent company of 87.2 billion yuan in the first three quarters of 2021, a year-on-year increase of 6.9%, and an operating revenue of 648.6 billion yuan, a year-on-year increase of 12.9%. The personal market stabilized and rebounded, and the household market, government enterprise market and emerging markets performed well, realizing double-digit rapid growth. In 2021, China Mobile’s estimated operating revenue is about 844.877 billion yuan to 852.558 billion yuan, with a year-on-year increase of about 10% to 11%, and the net profit attributable to the shareholders of the parent company is about 114.307 billion yuan to 116.464 billion yuan, with a year-on-year increase of about 6% to 8%.
China Mobile issued red chips today to accelerate the “return to a” and write a new chapter
Today, China Mobile has attracted much attention from all parties for online and offline subscription in the A-share market, with an issue price of 57.58 yuan / share, or becoming the largest A-share IPO project in recent 10 years. This also means that the three operators will gather in “big a”. In addition, Chunli medical “Huia” applied for purchase yesterday, after it was listed on the Hong Kong Stock Exchange in 2015.
Red chip enterprises “return to a” run out of “acceleration”. In this regard, industry insiders have said that with the superposition of multiple factors, the “return to a” of red chip enterprises is timely and natural.
The scientific innovation board has welcomed the return of many “wanderers”. Last February, China Resources Microelectronics Limited(688396) successfully landed on the science and innovation board and became the first stock listed on the red chip. Since then, Galaxycore Inc(688728) , Semiconductor Manufacturing International Corporation(688981) and No. 9 company have successively returned to A-Shares and successfully listed on the science and innovation board.
In order to attract red chip enterprises, the policy continues to add weight and broaden the road for the “return” of more enterprises.
In March 2018, the CSRC issued the notice on Several Opinions on the pilot issuance of shares or depositary receipts by innovative enterprises in China, which made it clear that “pilot red chip enterprises are allowed to issue depositary receipts for listing in the domestic capital market according to procedures; pilot red chip enterprises with conditions for stock issuance and listing can apply for stock issuance and listing in China”.
In April 2020, the CSRC issued the announcement on the relevant arrangements for the domestic listing of innovative pilot red chip enterprises; In June of the same year, the Shanghai Stock Exchange announced the notice on matters related to the application of red chip enterprises for the issuance and listing of science and innovation board, which further facilitated the return of red chip enterprises.
On September 17 this year, the CSRC officially issued the announcement on expanding the pilot scope of domestic listing of red chip enterprises, which expanded the scope of pilot industries from 7 to 14. In particular, it mentioned that the application of red chip enterprises of great national strategic significance for inclusion in the pilot is not subject to industry restrictions.
Behind a series of policies is the acceleration of the reform of the registration system. The registration system has led to the expansion of the capital market, widened the channels of enterprise equity financing, effectively increased the proportion of direct financing, and accelerated the “capital profit” of the real economy.
During the year, the number of A-share IPOs and total fund-raising have set a new historical record. According to the statistics of IPO date, as of December 21, the number of A-share IPOs in the year had reached 504, an increase of 15.3% compared with 437 in 2020; The total fund-raising exceeded 500 billion yuan for the first time to 518.1 billion yuan, an increase of 7.8% over last year.
It can be seen that the growing capital market is injecting surging momentum into China’s high-quality economic development. After the three major telecom operators gather a shares, “three barrels of oil” is also expected to gather A-Shares (CNOOC, a Hong Kong listed company, announced on September 26 that it plans to apply for A-share issuance and listing). This not only sets an example for the return of red chips, but also creates a win-win situation for the market and investors. As Yang Jie, executive director and chairman of China Mobile, said at the IPO roadshow, “China Mobile will strive to become a high-quality target in the A-share market and return investors with better performance.”
Build a nest to attract Phoenix, flowers bloom and butterflies come from. I believe that with the continuous maturity and improvement of the A-share market, more and more excellent entity enterprises will land in the capital market and continue to write a new chapter of development. (source: Securities Daily)
(economic information daily)
