China Mobile to raise to $8.8 billion in Shanghai listing

December 22, 2021: -On Tuesday, China Mobile, the world’s largest mobile network operator by total subscribers, said that it aims to raise to 56 billion yuan in a Shanghai public offering a year as he was kicked off the New York Stock Exchange.

An increasing number of U.S.-listed Chinese companies are seeking listings in China or Hong Kong amid rising Sino-U.S. tensions.

This month, Washington blocked Chinese companies, which include AI company SenseTime Group, after the allegations of human rights violations and finalized rules to kick non-compliant Chinese firms off American exchanges in three years.

China Mobile said in a prospectus that it is planning to sell up to 845 million shares at 57.58 yuan apiece, which raises as much as 48.7 billion yuan before an over-allotment option is exercised.

After that option is completely exercised, it will rise to 56 billion yuan.

China Mobile’s smaller state-owned rivals, China Telecom and China Unicom are already listed in China.

The three were delisted from the New York stock exchange after a Trump-era decision to restrict investment in Chinese technology firms, which was left unchanged by the Biden administration between continuing tensions amid Washington and Beijing.

In addition to the sanctions, the U.S. Securities Exchange Commission (SEC) finalized rules to delist U.S.-listed Chinese companies under the Holding Foreign Companies Accountable Act.

According to accounting firm EY, five of the top 10 Hong Kong listings in 2021 were secondary listings of U.S-listed Chinese companies, which include Baidu and Bilibili. The trend of Chinese companies that come home will continue.