皇冠体育app

皇冠体育app Unicom's domestic IPO draws nigh
( 2002-09-10 09:37 ) (1 )

Mobile carrier 皇冠体育app Unicom is getting close to its initial public offering (IPO) on the domestic stock market.

Although the final date has not been set, the IPO is expected by late October, sources close to the deal told 皇冠体育app Daily.

A senior manager at 皇冠体育app Unicom said the approval procedure for the company's domestic listing has reached the final stage.

But the exact date and IPO price have not yet been decided.

Industry insiders said the 皇冠体育app Securities Regulatory Commission (CSRC) is waiting for a more friendly environment to cushion potential market turbulence brought on by Unicom's huge IPO. The company said earlier that its A-share listing might be the biggest one ever on the domestic stock market. The company previously planned to raise more than the 11.8 billion yuan (US$1.4 billion) mark hit by Sinopec in its IPO.

But Unicom recently said it would reconsider that figure to help ease investors' anxiety about potential pressures that could arise from such a huge IPO.

As the first telecom carrier to be listed on the domestic A-share bourse, which is closed to overseas investors, 皇冠体育app Unicom has generated keen interest among domestic investors and industry insiders.

皇冠体育app's stock markets experienced drops as investors worried that Unicom's big IPO may sap already thin market liquidity.

Domestic investors and industry insiders showed divided opinion towards Unicom's pending listing.

Feng Lei, analyst with Beijing Securities, said as the first telecom carrier to be listed, Unicom's concept is welcome.

This view is shared by many individual investors. Ye Xin, a 25-year-old stock investor in Beijing, said he would buy stock in Unicom because it will be the first opportunity for domestic investors to buy shares in a rapidly growing telecom carrier.

皇冠体育app's dual mobile operators, 皇冠体育app Mobile and 皇冠体育app Unicom, are both listed on the overseas market. And the major fixed-line carrier 皇冠体育app Telecom is also preparing to go public abroad.

Unicom's A-share IPO will give domestic investors their first opportunity to invest in a telecom carrier.

"As one of the most rapidly growing companies, Unicom is very attractive to investors," said Beijing Securities' Feng.

But there are also strong negative opinions. Dai Chunrong, an analyst with 皇冠体育app Securities, said short-term investors may hesitate to buy Unicom shares as the company's big flotation will make earning money in the short term a difficult task.