06 July 2018
| Natalie Bannerman
China Tower, a Chinese mobile mast operator, has received approval for an IPO in Hong Kong that could potentially raise $10 billion in funds.
According to Reuters, China Tower won approval from
Hong Kong’s listing committee, an independent
group of market participants convened by the Hong Kong
exchange, as a result China Tower can begin pre-marketing of
the deal as soon as next-week, while books could be opened as
soon as 9 July.
According to those familiar with the matter investors and
bankers were waiting on Friday for the pricing of Chinese
smartphone maker Xiaomi’s IPO, which could raise
up to $6.1 billion. The Xiaomi’s deal is expected
to act as a key test of the market, with the second half of
2018 predicted to be busy in terms of IPOs. Timings of the
China Tower deal will rest on the outcome of the Xiaomi
Formed in 2014, China Tower was formed by merging the mobile
tower operations of China Mobile, China Telecom and China
Unicom. China Tower operated a total of 1.9 million tower sites
at the end of 2017, with 2.7 million tenants.
The company is hoping to raise between $8-10 billion, the
top end of which would value the company at $40 billion and
make it the world’s largest IPO since Alibaba
which set a record in 2014 with a deal in New York worth $25
China International Capital Corporation (CICC) and Goldman
Sachs are acting as joint sponsors of the China Tower IPO.