China Tower set for US$10b float

Business | Janice Huang 27 Jun 2018

China Tower is reportedly seeking approval this week for listing its shares in the city, which may be another hot initial public offering this year in the city.

The state-owned wireless infrastructure operator, which is backed by the big three telecommunications companies - China Mobile (0941), China Unicom (0762) and China Telecom (0728) - is aiming to raise US$10 billion (HK$78 billion) in the IPO.

It will start a pre-roadshow next week and begin to trade its shares in July, according to reports.

CICC and Goldman Sachs are the joint sponsors of the deal.

Meanwhile, Xiaomi's IPO performance was not as good as expected.

Ten brokers have lent a total of HK$7.57 billion margin financing for investors to subscribe to Xiaomi, which means the Chinese smartphone maker's retail tranche was oversubscribed only two times as of yesterday.

Xiaomi had started book building on Monday.

In other IPO action, Shanshan Brand Management (1749) said its shares have been oversubscribed 148 times, and it priced the IPO at HK$3.78 a share.

The mainland men's businesswear brand has raised net proceeds of HK$65.1 million, of which 37.8 percent will be used in developing its retail network in mainland China.

About 24.7 percent of proceeds will be used to deploy a variety of publicity campaigns on the mainland while around 19.3 percent will be used to enhance its information technology systems.

Trading of its shares will commence today. Shares closed 16 percent higher in the grey market yesterday.

Grace Wine Holdings (8146) and Shineroad International Holdings (15887) will also go public today.

Grace Wine saw its retail tranche oversubscribed 127 times, and the final IPO price was determined at 35 HK cents a share.

The mainland-based winemaker has got HK$40.6 million from the public offering, and its shares rose 15 percent in the grey market yesterday.

Shineroad International's retail tranche was oversubscribed 89 times. It announced that the IPO price will be 75 HK cents a share, and the firm raised HK$93.7 million.

Elsewhere, China Renaissance has reportedly filed a listing application to Hong Kong stock exchange.

Although the company has not revealed the size of the IPO, media reported previously that the firm aims to raise up to US$800 million, and it targets a market valuation of US$5 billion. Goldman Sachs and ICBC are hired as the joint sponsors.

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