China Telecom has earmarked nearly one-third of the proceeds due from its initial public offering - likely to be the world's largest this year - for an aggressive campaign of acquisitions.
The commitment to a strong expansion drive once the giant fixed-line carrier goes public is contained in a preliminary prospectus to its issue, due to be released on Monday.
The IPO will see China Telecom selling a total of 16.8 billion H shares and American depositary receipts to overseas investors through a dual listing in Hong Kong and New York to raise between US$3.4 billion and US$4 billion.
The offer is set to open in mid-October, with shares scheduled to commence trading on October 28, according to banking sources.
According to the prospectus, China Telecom's shares will be priced on the day the offer closes, which will be four days before the shares make their debut. The potential acquisitions will target assets of its parent, as well as strategic stakes in other telecommunications businesses. None were pending at present, it added.
Upgrading of the public vehicle's existing telecoms network infrastructure and broadband facilities will account for up to half of the net proceeds from the share offering, according to the preliminary prospectus.
