The second largest Chinese fixed-line telecoms operator China Netcom Corp Ltd has retained the services of Citigroup Inc, Goldman Sachs International, and China International Capital Corp to handle its initial public offering later this year.
The IPO is expected to raise between $1.5bn and $3bn, and is thought to be earmarked for the third quarter of 2004. The operator tentatively plans to list in both Hong Kong and the United States.
China Netcom has stated that between three to six of its most profitable networks, plus its Asia Netcom unit, would be part of the initially listed company. This a common practice in the Chinese market, where the state-owned parent puts its most profitable assets in the IPO company for the initial listing.
The IPO should help China Netcom upgrade its networks, and match China Telecom Group that mainly runs the country’s southern networks, in terms of enhanced corporate profile and the ability to tap into capital markets.
This article is based on material originally published by ComputerWire