Tietong looks to go public in two years
By Jonathan Yeung and Zhang Jin (China Daily)Updated: 2006-12-07 09:30
China Tietong Telecommunications Corp, one of the mainland's
six telecom operators, said it would seek an overseas listing in two
years.
"We aim for a dual listing in Hong
Kong and Singapore in two years if the conditions are ripe," Chairman Zhao
Jibin told China Daily.
If conditions aren't good, he said, China
Tietong would go for a Hong Kong listing first.
So far, the mainland's
four biggest telecom giants - China Mobile, China Unicom, China Telecom and China Netcom - have traded their shares in Hong Kong. Only
China Tietong and China Satellite Communications are not listed.
But
before going public, China Tietong, which earns money mainly by
providing telecom services to railways, will first try to boost its net assets
and business scale to be able to compete with larger rivals.
"Efficient
and sizeable net assets are a prerequisite for us to float shares in overseas
markets," Zhao said.
As the unlisted firm is unable to raise money from
the stock market, it will seek partnerships and issue bonds to establish a war
chest to bankroll its expansion.
So far, China Tietong has worked with
Hong Kong-listed CITIC Pacific to construct the GSM-R network, a new mobile
communication scheme for railways.
The company also plans to raise 3
billion yuan (US$375 million) through a long-term bond sale in 2007. That will
add to the 2 billion yuan (US$250 million) it has raised through a one-year bond
sale this year.
"It's understandable that China Tietong is eager to boost
its size," said Paul Chan, a telecom analyst at Hong Kong-based Taifook
Securities. "At present, it's just too small to compete."
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