China Mobile, the world's largest cellular phone operator, is planning a
multibillion-dollar share sale in Shanghai as early as next month to attract
domestic investors, sources familiar with the situation said on Monday.
Hong Kong's Chinese-language Apple Daily newspaper, citing an unnamed
mainland Chinese source, said the deal could raise as much as 80 billion yuan
It will likely be the biggest initial public offer of equity ever in China's
domestic markets, exceeding Industrial & Commercial Bank of China's 46.6 billion yuan (US$6.1 billion) Shanghai
IPO last year, the banking sources said.
Mobile hired KPMG to audit its proposed Shanghai listing late last year. An
auditing report has been completed and submitted in a package of listing
documents to regulators in Beijing for consideration, said the sources.
"All the necessary documents are well prepared now. The timing of the listing
is up to Beijing, but the company definitely aims for as soon as July," said one
of the sources.
China Mobile has also hired Goldman Sachs Gaohua Securities to advise on its
Shanghai listing, the sources said.
"We don't have a timeframe for an A-share listing. But that's always been the
company's intention," a Hong Kong-based China Mobile spokeswoman said.
"China Mobile is a pilot and if its listing goes successfully, you will see
many others like China Mobile listing domestically," another of the sources
Top regulators have said they were drafting new rules to allow red chips to
float shares on mainland bourses.
Three other major red chips, PetroChina, China Telecom and Shenhua Energy,
are expected to list in Shanghai before the end of this year, after China
Mobile, sources said.
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