1 min read.Updated: 14 Dec 2021, 12:29 PM ISTThe Wall Street Journal
China Mobile plans to offer 845.7 million shares, which would increase to as much as 972.6 million shares if it exercises an overallotment option
China Mobile Ltd. has received the regulatory nod to issue A-shares on the Shanghai Stock Exchange, paving the way for a home-market offering after the state-controlled telecom major was forced to delist in the U.S. earlier this year.
China Mobile said Tuesday it plans to offer 845.7 million shares, which would increase to as much as 972.6 million shares if it exercises an overallotment option.
The shares will amount to 3.97%-4.53% of total issued shares, and be offered in a combination of offline placement and fixed-price issuance to public investors, it said.
It didn’t provide a timeline or pricing for the offering. Chinese regulators have given approval for the share sale to occur in the next 12 months.
Hong Kong-headquartered China Mobile, one of China’s largest telecom companies, intends to use proceeds from a share sale for core business projects, including the development of 5G networks and new infrastructure for cloud resources.
The offering plan comes as political friction between the U.S. and Chinese governments is weighing on Chinese companies with exposure to the U.S.