China News Service Client, Beijing, December 17 (Reporter Wu Tao) China Mobile will soon list A shares. Not surprisingly, the amount of funds raised may exceed 56 billion yuan, making it the largest A-share IPO in the past 10 years.
What impact will this have on A shares?
How can investors participate in the new launch?
The largest IPO of A shares in the past 10 years
On December 13, China Mobile was granted IPO approval by the China Securities Regulatory Commission.
China Mobile's listing on the Shanghai Stock Exchange is approaching, and its announcement shows that investors will make online and offline purchases on December 22, 2021.
On August 18, the China Mobile prospectus disclosed on the official website of the China Mobile Securities Regulatory Commission showed that China Mobile plans to publicly issue no more than 965 million shares and is listed on the main board of the Shanghai Stock Exchange, and the issuance ratio does not exceed 4.50% of the total share capital after the issuance; 56 billion yuan.
Data map.
Photo by China News Agency reporter Chen Jimin
It is understood that this scale exceeds the 54.4 billion yuan raised when China Telecom returns to A shares, making it the largest A-share IPO in the past 10 years.
On December 14, China Mobile announced that the number of shares to be issued to the public this time will not exceed 845.7 million shares, and the number of shares to be issued will not exceed 3.97% of the total number of shares issued by the company after the issuance. All of them are new public offerings. Transfer of old shares.
In addition, China Mobile implements the "green shoe" mechanism for this listing, that is, the issuer grants the joint lead underwriters an over-allotment option that does not exceed 15.00% of the initial issued shares. If the "green shoes" are exercised in full, the total number of shares will be issued. Will be expanded to 972555000 shares, accounting for approximately 4.53% of the company's total issued shares after the issuance.
All over-allotted stocks will be allotted to online investors.
According to the research report issued by Shenwan Hongyuan on December 15th, based on the proposed net fundraising of China Mobile’s prospectus application draft of 56 billion yuan and the issuance volume of all "green shoes", the corresponding price is 57.58 yuan/share, which is lower than the Hong Kong stock price. The premium is about 53%.
However, the final issue price of China Mobile will not be determined until the inquiry is over.
What is the fundraising used for?
According to the prospectus, the funds raised from this issuance of China Mobile will focus on "new infrastructure, new elements, and new kinetic energy", and will be invested in "5G boutique network construction projects", "cloud resources new infrastructure construction projects", and "Gigabit smart home construction projects". "Smart Zhongtai Construction Project" and "New Generation Information Technology R&D and Digital Intelligence Ecological Construction Project".
Statistics show that as of the end of June 2021, China Mobile had 946 million customers, 251 million 5G package customers, and 205 million household broadband customers.
China Mobile has a total of over 5.28 million base stations, of which 3.32 million 4G base stations, accounting for about one-third of the global 4G base station, 4G network administrative village coverage rate of 99%; 5G base stations over 500,000, 5G SA network has been implemented Provide services in urban areas above prefectures and cities, some counties and key areas nationwide.
"By the end of 2022, China Mobile's 5G network will basically achieve continuous 5G coverage in towns and villages across the country, as well as effective coverage in important parks, hotspot areas, and developed rural areas, and the industry's leading position will be further consolidated." China Mobile said.
China Mobile also stated that the company expects that the net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses in 2021 will be approximately 107.285 billion yuan to 109.328 billion yuan, a year-on-year increase of approximately 5% to 7%.
Three major operators gather in the A-share market
After China Mobile is listed on the A-share market, the three major operators will gather together in the A-share market.
Referring to the situation when China Telecom returned to the A-share market, some investors were worried: Will China Mobile return to the A-share market?
Data map.
Photo by China News Agency reporter He Penglei
When China Telecom was listed on the A-share market, the issue price was 4.53 yuan. Although the stock price did not break during the first day of listing, it fell into a state of "unstoppable falling". Today, it is still hovering below the issue price.
However, Shen Wanhongyuan pointed out that China Mobile's IPO break risk is expected to be less than that of China Telecom.
Taking into account that China Mobile's expected issuance of PE (price-earnings ratio) based on the net amount of funds raised in the filing draft is about 12 times, it is 40% lower than China Telecom's first PE.
And it is generally believed that the asset quality of China Mobile is better than other telecom operators.
In addition, some analysts pointed out that after the A-share issuance and listing, China Mobile is expected to become the leading listed company in the A-share telecommunications service industry. As a high-quality target, this is absolutely extremely scarce for the A-share market with a huge market value. assets.
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