China Tower raises US$6.9b in world's largest IPO in two years — sources

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HONG KONG (Aug 1): China Tower Corp Ltd has raised US$6.9 billion after pricing its initial public offering (IPO) at the bottom of an indicative range, two people close to the deal said on Wednesday, in the world's biggest listing in two years.

The Beijing-based firm sold 43.1 billion shares new shares, or 25% of its enlarged share capital, at HK$1.26 (US$0.1605) each, valuing the firm at about US$28 billion, the people told Reuters.

China Tower, the world's largest telecoms tower operator, had late last month set a price range of HK$1.26 to HK$1.58 for its share sale.

The float is seen as a test of the Hong Kong IPO market as investors consider several big deals at a delicate time for the city's stock market, with the benchmark Hang Seng Index down about 14% from its January peak.

It also comes as China's economy has begun to lose growth momentum this year amid a government push to reduce debt and an escalating trade conflict with the United States.

China Tower did not immediately respond to a request for comment. The people declined to be identified as the information was not public.

At US$6.9 billion, China Tower's IPO will become Hong Kong's biggest listing since Postal Savings Bank of China Co Ltd's US$7.63 billion float in 2016.