China Mobile (600941) was listed on Shanghai Stock Exchange on January 5, and all three operators landed a shares. Meanwhile, on the evening of January 4, China Mobile announced that it planned to repurchase no more than 2.048 billion Hong Kong shares and cancel them.
According to the prospectus, China Mobile raised nearly 56 billion yuan, exceeding the financing scale of 47.904 billion yuan in China Telecom Corporation Limited(601728) , becoming the largest new share financing scale of A-Shares since the IPO of Agricultural Bank Of China Limited(601288) in June 2010.
launch 2 billion share repurchase on the eve of listing
As the world-class telecom operator with the largest network and customers in the world, China Mobile disclosed the initial IPO placement on the evening of December 23 last year, including the list of 19 strategic investors and the details of the number of shares allocated. The national transfer fund phase II, social security fund, large fund phase II, Zhengda investment and Brunei Investment Bureau are listed. The final number of strategic placement in this offering is 422 million shares, It accounts for 43.39% of the total amount of this issuance after the full exercise of green shoes, and the total subscription amount is as high as 24.3 billion yuan.
In addition, 856 million new shares were issued and the co lead underwriters were granted the over allotment option (or “green shoes”) not exceeding 15% of the number of shares initially issued. If the green shoes are fully exercised, the total number of shares issued will be expanded to 973 million, and all the over placed shares will be placed to online investors.
The IPO price of China Mobile is 57.58 yuan, and the total amount of funds raised is nearly 56 billion yuan. The purpose of fund-raising will focus on “new infrastructure, new elements and new kinetic energy”, promote chbn’s all-round development, promote digital intelligence transformation, and build a new digital intelligence ecology for 5g boutique network construction, new infrastructure construction of cloud resources, Gigabit smart home construction, smart middle platform construction New generation information technology research and development and digital intelligence ecological construction.
Since last year, many new shares have broken, and some investors have played a “retreat drum”. The issuance results disclosed by China Mobile show that the company was abandoned by online investors, with an amount of 743 million yuan. In addition to being abandoned by online investors, China Mobile was also abandoned by offline investors, with an amount of 12.7049 million yuan, with a total amount of 756 million yuan.
On the eve of listing, China Mobile announced on January 4 that the company planned to repurchase no more than 2.048 billion Hong Kong shares, equivalent to no more than 10% of the total issued Hong Kong shares of the company on the date of the 2021 annual general meeting. According to the Hong Kong Companies Ordinance, the Hong Kong shares repurchased by the company will be deemed to be cancelled at the time of repurchase.
China Mobile said that the repurchase will be carried out in favor of the company and shareholders, depending on market conditions and capital arrangements. In terms of repurchase time, China Mobile will repurchase Hong Kong shares on the Hong Kong Stock Exchange in accordance with the repurchase authorization after the exercise period of the over allotment option for the issuance of RMB shares expires on February 7, 2022.
According to market participants, choosing to buy back shares and cancel them on the eve of listing obviously plays a stabilizing role in the stock price of China Mobile, which is about to go back to a for listing. According to the closing price of Hong Kong shares of China Mobile on January 4 of HK $48, the above repurchase will cost HK $98.3 billion.
the agency believes that the risk of breaking on the first day is small
With the continuous promotion of the comprehensive deepening reform of the capital market, since the release of the new regulations on IPO inquiry, A-Shares are no longer “stable profit without loss”, and the stock price trend of China Mobile after returning to a has attracted much market attention.
The stock price trend of China Telecom Corporation Limited(601728) back to a last year is of reference significance. The China Telecom Corporation Limited(601728) listed on August 20 last year issued 10.575 billion new shares at a price of 4.53 yuan, raising a net fund of 53.727 billion yuan. On the first day of listing, China Telecom Corporation Limited(601728) achieved an increase of 34.88%. Among them, the green shoe mechanism also plays a role in protecting the plate. After the expiration of the green shoe mechanism, China Telecom Corporation Limited(601728) controlling shareholder Telecom Group launched a shareholding increase plan of 4 billion yuan to protect the market.
Like China Telecom Corporation Limited(601728) , China Mobile has also introduced the green shoe mechanism. In addition, China Mobile’s A-Shares are about to be listed and traded. Its Hong Kong shares rose 1.91% on January 4 and closed at HK $48, converted into RMB 39.27. If calculated at the issue price of 57.58 yuan of China Mobile, its ah premium rate is 46.63%, less than half of China Telecom Corporation Limited(601728) ah premium rate. As of January 4, China Telecom Corporation Limited(601728) ah share premium rate is 104.33%.
Shenwan Hongyuan Group Co.Ltd(000166) believes that the listing breaking risk of China Mobile is less than China Telecom Corporation Limited(601728) . Under the escort of “green shoes”, China Telecom Corporation Limited(601728) did not break in the first month of listing, but it broke for the first time in the day after the expiration of the green shoe mechanism, and the stock price continued to fluctuate at a low level thereafter. Considering that China Mobile’s expected issuance PE based on the net fund-raising of the application draft is about 12 times, 40% lower than the initial PE of China Telecom Corporation Limited(601728) , and China Mobile ranks first among the three major operators, it is expected that its post listing break risk is less than China Telecom Corporation Limited(601728) .
(E company)
