China Mobile opened higher on its Shanghai debut on Wednesday after raising 48.7 billion yuan ($7.64 billion) in China’s biggest public share offering in a decade.
The telecommunications giant opened at 63 yuan, 9.4% higher than its offer price of 57.58 yuan. However, the gains were pared over the course of the day and the stock closed just 0.52% higher at 57.88 yuan.
The carrier’s Hong Kong-listed shares closed 3.33% higher. The company said in a filing Tuesday that it would press ahead with a plan to buy back up to 2.05 billion shares, worth nearly $13 billion.
The company said in a filing that it would press ahead with a plan to buy back up to 2.05 billion shares, worth nearly $13 billion.
The carrier’s debut is being closely watched after a number of Chinese companies, including biotech BeiGene, recently saw shares fall below their offering prices on the first day of trade.
The world’s largest mobile network operator by total subscribers, China Mobile had sold 845.7 million shares at 57.58 yuan each in Shanghai.
The company has said it plans to use proceeds from the offering to develop projects including premium 5G networks, infrastructure for cloud resources and intelligent ecosystems.
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 decision by the administration of former US president Donald Trump to restrict investment in Chinese technology firms, amid continuing tensions between Washington and Beijing.
China Mobile said proceeds from the offering would be used to develop projects including premium 5G networks, infrastructure for cloud resources and intelligent ecosystems.
- Reuters and AFP, with additional editing by George Russell
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