SHANGHAI: Shares of China’s second-largest mobile operator, China Telecom, surged as much as 44 percent over the offer price of 4.53 yuan, as the company made its stock market debut on Friday.
China Telecom listed more than 11.9 billion shares, according to a posting on the company’s website. The company raised 54.2 billion yuan ($8.36 billion) on the first day of its listing on the Shanghai Stock Exchange, exceeding expectations by around 12%. The stock was trading 16.34% higher at 5.27 yuan per share.
The listing drew the attention of around 20 strategic investors, including telecom giant Huawei Technologies, data security company DBAPPSecurity Co, and online video app operator Bilibili, all taking shares in the offering. Sixteen state-owned companies also bought shares, including State Grid Corporation, China Development Bank, and China’s national semiconductor investment fund. However, China Telecom’s parent will keep a 60% stake.
China Telecom had previously been listed on the New York Stock Exchange, but was suspended in January and later delisted in May over an alleged threat to US national security.
The company’s debut comes days after China Telecom reported a 27.2% surge in its first-half earnings. The company’s net profit jumped to 17.7 billion yuan in the first half of the year, while its revenues amounted to 219.2 billion yuan in January-June 2021, a 13.1% increase in annual terms.