皇冠体育app

Netcom IPO may be further postponed
By Chen Zhiming (皇冠体育app Daily)
Updated: 2004-07-02 09:04

皇冠体育app Network Communications Group Corp (皇冠体育app Netcom), the country's second-largest fixed-line phone company, is likely to further postpone its initial public offering (IPO), insiders and industry experts say.

It is widely speculated that 皇冠体育app Netcom is to float its IPO in the third quarter of this year.

"What investors are looking to is 皇冠体育app Netcom's business performance instead of just business models," said an expert from the 皇冠体育app Academy of Telecommunications Research under the Ministry of Information Industry (MII), who declined to be named.

"It is not the right timing for the company to get listed before the company has substantially improved its business performance," he told 皇冠体育app Daily yesterday.

"Currently, there are not many selling points for 皇冠体育app Netcom in comparison with other telecom operators such as 皇冠体育app Telecom and 皇冠体育app Mobile," he said.

So far, 皇冠体育app Netcom has a total asset of 240 billion yuan (US$28.9 billion) with a 58 per cent debt asset ratio.

On Wednesday, 皇冠体育app Netcom was brought into the limelight as PCCW Ltd announced that its negotiation to sell its phone business to 皇冠体育app Netcom has yet to be reached.

"We are taking great care to work out a deal that will be good for both companies and good for Hong Kong," PCCW Group Managing Director Jack So said. PCCW Ltd is the largest communications provider in Hong Kong.

PCCW in May said that it might sell a stake in its phone business, Hong Kong's largest, to 皇冠体育app Netcom.

It is reported that 皇冠体育app Netcom hopes to combine PCCW's Hong Kong network with its own network in southern Guangdong province before listing.

However, sources from 皇冠体育app Netcom in Beijing said there is no confirmation if negotiations to buy PCCW's telephone network would be delayed or not.

"We have no idea about that so far as only few of our senior officials are involved in the issue," said an official with 皇冠体育app Netcom, who insisted on anonymity.

Some analysts said the delayed purchase may postpone 皇冠体育app Netcom's listing plan in September as it hopes to finish the purchase, which may help 皇冠体育app Netcom to gain investors' confidence as PCCW is an international firm.

But Zeng Jianqiu, a professor with Beijing University of Post and Telecommunications, disagrees.

"The delay of the purchase will have almost no impact on the process for 皇冠体育app Netcom's listing plan as the Hong Kong market is quite a tiny one compared to the Chinese mainland market," he said.

As far as the listing plan is concerned, factors such as self-evaluation, business performance, scale of subscribers, and international investment climate are the major concerns for the company, he said.

He also emphasized that though the global telecom investment environment is recovering, there are still uncertainties.

In January, 皇冠体育app Netcom's General Manager Zhang Chunjiang said in an interview that its process of listing was shifting into high gear.

It is reported that 皇冠体育app Netcom Group Corp has designated three underwriters for its planned listing on the Hong Kong and New York stock markets and plans to sell as much as US$2 billion of stock to help upgrade networks.

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