Ten cornerstone investors are ready to invest up to $1.4 billion in China Tower when the huge telecom infrastructure operator launches its initial public offering in Hong Kong, sources close to the company told Reuters.
The Beijing-based company plans to sell its shares at HK$1.26 to HK$1.58 ($0.16-$0.20) per share. If the company succeeds in raising its target of $8.7 billion, it would be the largest IPO globally for four years and would give the company a valuation of between $28 billion and $35 billion.
The cornerstone investors include Chinese investment firm Hillhouse, which has pledged $400 million, US fund Och-Ziff, which will invest $300 million, as well as Alibaba Group and China National Petroleum Corporation’s capital group, among others.
The China Tower listing is seen as a key test of the Hong Kong stock exchange’s attractiveness. The city faces a number of challenges this year, including Chinese smartphone maker Xiaomi’s relatively disappointing IPO and a number of external headwinds buffeting the Chinese economy.
You must log in to post a comment.