The fundraising will be used for 5G industrial Internet construction projects, cloud-network integration new information infrastructure projects, and scientific and technological innovation research and development projects.
Editor’s note: This article from the news interface, author: Jiang Jingling.
On March 9, China Telecom issued an announcement stating that in order to seize opportunities for digital development, improve corporate governance, broaden financing channels, accelerate reform and development, promote strategic implementation, and achieve high-quality development, the company intends to apply for this A-share issuance And listed on the main board of the Shanghai Stock Exchange.
Currently, Chinese telecom entities are listed in Hong Kong and issue ADRs (American Depositary Receipts) in the United States. As of the close on the 9th, China Telecom’s Hong Kong stock price was reported at HK$2.65, with a total market value of HK$214.471 billion. Previously, the three major domestic operators, including China Telecom, were suspended from trading by the New York Stock Exchange under the influence of an executive order of the Trump administration.
The announcement shows that the number of A shares to be issued by China Telecom will not exceed 12,093,342,392 shares (that is, not more than 13% of the company’s total issued share capital after the issuance of A shares, before the over-allotment option is exercised). The fundraising will be used for 5G industrial Internet construction projects, cloud-network integration new information infrastructure projects, and scientific and technological innovation research and development projects.
Specifically, the purpose includes three points:
1) Grasp the digital development opportunities and promote the implementation of the cloud-to-digital transformation strategy. This A-share issuance will help the company grasp the economic and social digital transformation opportunities, comprehensively deepen reforms, promote the implementation of the cloud-to-digital transformation strategy, and enhance technological innovation capabilities. Upgrade products and services, enhance customer experience, expand business scale, enhance the company’s competitive advantage, and lay a solid foundation for the company’s high-quality development.
(2) Broaden financing channels and enhance sustainable development capabilities. This A-share issuance will help the company establish more flexible and diversified financing channels, use domestic and foreign capital markets, broaden funding sources, strengthen capital strength, and improve resistance. Risk capacity and enhance sustainable development capacity.
(3) Improve corporate governance and enhance comprehensive competitiveness. This A-share issuance is conducive to optimizing the corporate governance structure. By introducing strategic investors that are compatible with the company’s development strategy, complementary in capabilities and resources, and have synergistic effects, the level of governance will be improved. , To further enhance the comprehensive competitiveness.
China Telecom will hold an extraordinary general meeting of shareholders, a domestic shareholder class meeting and a H share class meeting for approval on April 9, 2021 (Friday).