China Unicom, moving closer to a listing in Hong Kong or on the Nasdaq market in the United States - or possibly both - has appointed Morgan Stanley to underwrite the initial public offering (IPO), according to sources.
The fledgling telecommunications company said it wanted to raise up to US$1 billion to help it compete against giant China Telecom.
China Unicom officials have said the company might want to list shares in Hong Kong and in the US.
The Laodong Daily has reported the company would use proceeds from an offering to finance the development of a nationwide mobile telephone network.
Analysts have speculated that a listing by China Unicom could take place by November.
However, before China Unicom will be able to finalise a listing plan, it needs to resolve improper foreign investments.
Beijing has ordered China Unicom to look at ways of compensating foreign investors for improperly held stakes.