Investing.com – China Tower Corporation, the world’s biggest telecommunications group by revenue, is set to debut its listings on the Hong Kong Stock Exchange on Wednesday.
The Chinese state-owned telecommunications infrastructure company is seeking $6.9 billion in its planned initial public offering in Hong Kong, CNBC reported on Tuesday. The IPO would be the second biggest offering since 2016, just behind the Postal Savings Bank of China Co. Ltd.’s $7.63 billion float in Hong Kong two years ago.
Analysts told CNBC that China Tower had a firm monopoly of the domestic mobile market, which is dominated by state-owned companies.
"Basically, it's like a monopoly in the China market," said Ivan Li, research director at DBS Vickers in Hong Kong, stressing China Tower's dominant market share.
"Investors are getting more picky and, in general, they are seeing a shift towards more traditional industry," he said.
The Chinese company controlled over 1.8 million mobile towers, about 1,000 more than the number of the second-largest company in the market, according to reports.
China Tower said in a press release that “serving multiple tenants at a site increases our marginal profit, even after the co-location discounts.”
Tong Ji-lu, chairman of the company, said the company would keep investing in 5G-related business, which “can bring exciting new opportunities.”