Three major domestic operators gather in A shares
Yangcheng Evening News reporter Lin Xi
Investors are all sweating for China Mobile's listing.
Although the amount of abandonment of more than 700 million yuan was encountered not long ago, setting the record for the highest abandonment of A-shares, China Mobile’s performance on the first day of A-share listing was remarkable.
On January 5, the largest A-share IPO in the past 10 years, the "Big Mac" China Mobile was listed on the main board of the Shanghai Stock Exchange. The issue price of China Mobile was 57.58 yuan, an increase of 9.41% at the opening, and a total market value of 63 yuan. Over 1.3 trillion yuan.
As of the close of the day, the stock price fell back to 57.88 yuan, closing up 0.52%, and the total market value was 1.23 trillion yuan.
So far, the three domestic operators of China Mobile, China Telecom and China Unicom have gathered in A shares.
The total amount of funds raised is nearly 56 billion yuan
Yang Jie, Chairman of China Mobile, stated that on October 23, 1997, China Mobile was listed on the Hong Kong Stock Exchange and became the "first overseas listing of a central enterprise."
Today, China Mobile landed on A shares and became the “red chip company returning to the A-share main board listing”. This is another milestone in China Mobile’s development history, marking China Mobile’s successful establishment of a domestic and foreign capital operation platform for the company. It has laid a solid foundation for advancing the transformation of digital intelligence and accelerating high-quality development.
China Mobile is the operator with the largest customer base in the world.
The prospectus shows that China Mobile has raised nearly 56 billion yuan in total funds raised during the return to A-share listing, surpassing China Telecom’s 47.904 billion yuan of financing scale, becoming the largest A-share financing scale since the Agricultural Bank of China’s IPO in June 2010.
The purpose of fundraising will focus on "new infrastructure, new elements, and new kinetic energy", promote digital intelligence transformation, and build a new digital intelligence ecology for 5G boutique network construction, cloud resource new infrastructure construction, gigabit smart home construction, and wisdom. There are 5 projects including platform construction, new generation information technology research and development, and digital intelligence ecological construction.
The previous IPO documents show that China Mobile’s initial placement includes a list of 19 strategic investors and a detailed list of the number of shares allocated. The second phase of the China National Regulatory Fund, the social security fund, the second phase of the large fund, Zhengda Investment and the Brunei Investment Bureau are listed. This issuance The final strategic allotment amount is 422 million shares, accounting for about 43.39% of the total issuance of the green shoes after the full exercise, and the total subscription amount is as high as 24.3 billion yuan.
With the continuous advancement of the comprehensive deepening reform of the capital market, since the release of the new IPO inquiry regulations, A-shares are no longer “stable profit without losing”. Since last year, many new stocks have broken, and some investors have also attacked China Mobile before. "Retreat."
China Mobile’s issuance results revealed that the company was abandoned by online investors for a total of 743 million yuan.
In addition to being abandoned by online investors, China Mobile was also abandoned by offline investors with an amount of 12.7049 million yuan, for a total of 756 million yuan.
However, investment institutions are generally optimistic about China Mobile's A-share listing.
Some brokerages said that China Mobile's return to the A-share listing is a milestone event in the communications sector, which has a certain boost to the entire sector, and the upstream and downstream of the industry chain will also benefit.
China Mobile earned 300 million yuan last year or a day
On the eve of listing on the Shanghai Stock Exchange, China Mobile also announced its 2021 performance forecast.
According to the announcement, China Mobile expects its operating income last year to be 844.877 billion to 852.558 billion, a year-on-year increase of 10% to 11%; net profit is 114.307 billion to 116.464 billion, a year-on-year increase of 6% to 8%.
Based on this estimated amount, China Mobile may earn about 300 million yuan a day last year.
According to the prospectus, from 2018 to 2020 and the first half of 2021 (hereinafter referred to as the "reporting period"), China Mobile achieved operating income of 736.819 billion yuan, 745.917 billion, 768.07 billion, and 443.647 billion, with corresponding net profits of 1168.69 respectively. Billion yuan, 106.475 billion yuan, 108.134 billion yuan, 59.186 billion yuan.
It is worth mentioning that just before the listing, China Mobile announced on January 4 that the company intends to repurchase no more than 2.048 billion Hong Kong shares, which is equivalent to no more than 10% of the total number of Hong Kong shares issued by the company on the day of the 2021 annual general meeting. .
This is also China Mobile's first repurchase in the Hong Kong H-share market.
China Mobile said that the repurchase will be carried out in favor of the company and shareholders, depending on market conditions and funding arrangements.
In terms of repurchase time, China Mobile will repurchase Hong Kong shares on the Hong Kong Stock Exchange in accordance with the repurchase authorization after the exercise period of the over-allotment option for the issuance of RMB shares expires on February 7, 2022.
Based on the closing price of China Mobile's Hong Kong stocks of HK$48 on January 4, the repurchase will cost HK$98.3 billion.
An investment bank released a research report saying that China Mobile announced plans to exercise shareholder authorization to repurchase up to 10% of the issued H shares. This move is a positive signal to the market, rating "overweight" and setting a target price of HK$65 for Hong Kong stocks.
Some analysts pointed out that choosing to repurchase shares on the eve of listing will stabilize China Mobile's share price for A-share listing.
Invest heavily in 5G network construction
In the future development, 5G construction is the top priority of operators.
Public data shows that as of November 2021, China Mobile's 5G package users reached 374 million, with a penetration rate of nearly 40%.
There are more than 560,000 5G base stations.
This year, China Mobile will continue to make efforts to 5G, enhance network coverage, and promote the landing and commercialization of 5G industry applications.
And more than half of the funds raised in the A-share listing will also be used for 5G.
From the prospectus, 28 billion yuan will be invested in the 5G boutique network construction project.
In recent years, 5G construction has not only set off a new wave of investment in mobile communication networks, promoted the continuous innovation of new infrastructure construction and the transformation and upgrading of user information consumption, but also opened up a new space for economic and social innovation and development.
Data shows that China has built more than 1.15 million 5G base stations, accounting for more than 70% of the world; 5G terminal users have reached 450 million, accounting for more than 80% of the world; all prefecture-level cities, more than 97% of counties and 40% of the world Townships and districts have achieved 5G network coverage.
The Huatai Securities research report predicts that in the future, the construction of smart home networks will bring more opportunities for operators to create value in the 5G industry chain, and further help operators open up new market space.