Mainland telecommunications equipment manufacturer ZTE Corp, the first A-share company to seek a subsequent H-share listing, is offering its shares at a discount of up to 34 per cent to its last traded price on the Shenzhen stock exchange. The company is selling 141.07 million H shares to raise between $2.47 billion and $3.1 billion. Goldman Sachs is the sponsor of the initial public offering. ZTE will begin its international roadshow on Monday, with pricing to be fixed on December 2. Trading is slated to start on December 9, one week ahead of two giant Hong Kong public offerings - the US$3 billion offering of the Housing Authority's Link Reit (real estate investment trust) and a US$1 billion offering by Air China. ZTE has issued an indicative pricing range of $17.50 to $22 a share, which translates into a discount of between 17.2 per cent and 34 per cent to yesterday's closing price of 28.19 yuan on the Shenzhen A-Share Index. But the discount would be narrowed to between 9.6 per cent and 28.1 per cent if compared with the 30-day average Shenzhen trading price of 25.91 yuan. The deep discount is likely to put pressure on the company's A shares next week. ZTE failed in its first attempt to float shares in Hong Kong two years ago after minority shareholders raised objections to the offering, complaining that floating H shares - which generally trade at a lower price-earnings ratio than A shares - would erode the stock's valuation on the domestic exchange. Goldman can ask ZTE to issue an additional 19.08 million shares to cover overallotment if demand for the issue is strong enough to warrant it. If the overallotment is activated, ZTE could raise up to $3.5 billion, the same amount it intended to raise in its aborted H-share offering two years ago.