Talks on a deal between its parent and PCCW believed to have failed
China Netcom Group Corp (Hong Kong), the listing arm of China's No2 fixed-line carrier, has valued its initial public offering at between $8.1 billion and $9.2 billion, making it the third-largest share offering this year.
The company is expected to price its shares at between $7.80 and $8.80 each, representing adjusted forward earnings multiples of 7.1 to 8.1, according to market sources.
The pricing will be announced today as Netcom launches a two-week international roadshow in Hong Kong. It is also due to file its revised listing prospectus with the US Securities and Exchange Commission.
Netcom's underwriting syndicate has forecast adjusted profit growth for next year of 15 per cent, to about 7.6 billion yuan, against street consensus of 9.7 per cent profit growth for rival China Telecom Corp.
Netcom is forecasting a 9.15 billion yuan net profit for the current year.
