China Mobile, biggest IPO in a decade, jumps 10 per cent on debut as investors shrug off valuation, blacklisting fears

Name: China expands 5G network to over 1.15 million base stations, more than rest of the world combined
Uploaded: 2022-01-05T01:57:39.000Z
Duration: 1 min 37 s
Description: China expands 5G network to over 1.15 million base stations, more than rest of the world combined

China Mobile raised about US$8.8 billion from local investors in December, making it the world’s second biggest IPO in 2021

The A shares were priced about 52 per cent higher than its own shares listed in Hong Kong; the premium currently stands at 42.7 per cent

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A sign of China Mobile is seen on a street in Shanghai in January 2021. Photo: Reuters

Cheryl Heng

Published: 9:57am, 5 Jan 2022Updated: 4:45pm, 5 Jan 2022

China Mobile, kicking off the first stock listing in the mainland market, jumped as much as 10.4 per cent as investors shrugged off concerns about valuations to focus on its market-leading position as authorities seek to shore up the economy.

The stock opened at 63 yuan on its Shanghai debut on Wednesday and hit a high of 63.58 yuan, before closing at 57.88 yuan. It trades under the 600941 code.

The company raised 56 billion yuan (US$8.8 billion) by selling 972.6 million new shares, including an over-allotment, at 57.58 yuan apiece in late December, making it the world’s second-largest initial public offering (IPO) in 2021. It was also China’s biggest domestic IPO in a decade, according to Reuters.

The listing marks a year since several Chinese companies, including peer China Telecom, were forced out of the New York Stock Exchange under an executive order signed by former US president Donald Trump for their alleged ties to the Chinese military. The blacklisting has continued to mar US-China ties, including the most recent move against China’s AI champion, SenseTime Group.

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China expands 5G network to over 1.15 million base stations, more than rest of the world combined

China Mobile set the IPO price at a 52 per cent premium over its own shares traded in Hong Kong last month. Those shares closed at HK$49.60 on Wednesday, or the equivalent of 40.55 yuan based on the current exchange rate.

The telco separately said on Tuesday that its stock buyback mandate of 10 per cent or up to 2.05 billion shares in Hong Kong could begin from February 7, a plan first approved by shareholders in March last year.

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