Hong Kong-listed China Telecom Corp, the state-owned wireless carrier blacklisted by Washington, said on Tuesday it plans to sell shares in Shanghai to broaden its financing channels, reported Reuters.
China Telecom proposes to sell up to 12.09 billion shares publicly on the Shanghai Stock Exchange, or 13% of the enlarged capital base, according to an exchange filing. The company will raise roughly $4.1 billion based on its Hong Kong closing price on Tuesday.
China Telecom may also expand its offering by 15% by exercising an over-allotment “greenshoe” option, said Reuters.
A Shanghai listing can help the company “broaden sources of funds, enhance capital strengths and improve risk tolerance,” China Telecom said on Tuesday.