China Netcom files US$1.5bn IPO plan

China Netcom Group (Hong Kong), a subsidiary of China's second-largest fixed-line phone operator in China, has filed plans with U.S. regulators for a US$1.5 billion IPO to fund expansion. The state-owned telco, the only unlisted company among China's four big telecoms operators, plans to sell 1.05 billion shares in the offering, with shares to start trading in New York on November 16 and in Hong Kong a day later. China Netcom said it would price the shares on November 9 in New York, adding that it plans to pay 35-40% of its profit as dividends to draw investors. That would give it a dividend yield of about 4%, against the 2.6% yield for China Telecom, the fixed-line market leader.