Chinese telecommunication giant Huawei and online streaming site Bilibili has joined a slew of stated-owned companies to subscribe shares of China Telecom, which is China’s largest fixed-line operator that is raising up to CNY54.2 billion in a stock offering in Shanghai after delisting from the New York Stock Exchange in May.
Detail:
In July, China Telecom has obtained the approval to list on the Shanghai Stock Exchange, which come six months after the company was threatened by the U.S authorities to delist from the New York Stock Exchange.
According to the China Telecom’s IPO prospectus, it plans to issue 12.1 billion share to raise up to CNY54.4 billion on Shanghai Stock Exchange.
Huawei has agreed to buy 220.7 million A share of China Telecom, according to the telecom operator’s exchange filing with the Shanghai Stock Exchange.
Hong Kong and the U.S listed Bilibili has pledged to buy 110.3 million shares worth CNY500 million.
Apart from Huawei and Bilibili, a slew of strategic investors that subscribed shares of China Telecom, including large state-owned companies such as the country’s largest power distributor State Grid Corporation of China, the largest coal miner and wind power generator China Energy Investment Corporation; state-backed investment fund such as Chengdu Major Industrialization Projects First Phase Equity Investment Fund, Suzhou High Speed Rail New Town Economic Development.
Context:
China Telecom was one of the first state-owned Chinese companies to list in the U.S when it launched an initial public offering in 2022.
China Telecom, which is also listed in Hong Kong Stock Exchange, along with China Unicom and China Telecom had received delisting notification from the NYSE in January.
US regulators have also threatened to de-list more Chinese companies if they do not comply with American auditing standards. About 250 Chinese companies trade shares more on US stock exchange.