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China Tower Corporation (0788.HK)
27-07-2018, 07:31 PM. (This post was last modified: 08-08-2018, 01:17 PM by cyclone. Edit Reason: Changed thread title )
Post: #1
China Tower Corporation (0788.HK)
China Tower’s IPO gets cool retail response as trade tensions and unstable markets keep investors cautious
Brokers say only about 21 per cent of the retail offer has been taken up, although the international portion has had more success

Laura He
PUBLISHED : Thursday, 26 July, 2018, 10:15pm
UPDATED : Thursday, 26 July, 2018, 11:11pm

China Tower, the world’s biggest telecoms transmission tower operator, saw a lacklustre response from retail investors on the second day of its US$8.7 billion Hong Kong IPO, as many potential buyers took a cautious approach in the face of market volatility and global trade tensions.

Anecdotal evidence from seven of Hong Kong’s main stockbrokers showed retail investors had subscribed to around HK$720 million (US$91.7 million) worth of shares, only about 21 per cent of the amount available.

“This is a huge IPO, coming at a time when the stock market is volatile,” said Alvin Cheung, associate director at Prudential Brokerage.

“It’s a Chinese state-owned giant with stable earnings, and has promised a 50 per cent dividend payout ratio. I don’t think Hong Kong investors are worrying about whether it’s a risky business.

“But the overall market is weak as the US and China are in a tense trade battle. Investors have become defensive or have set tighter budgets for IPO subscriptions. I think many are holding off their decisions until the last day [of the public offering].”

The portion of China Tower’s offer for international placement has been oversubscribed, however. Analysts have attributed that to the fact that the company is state-owned and has stable revenues, which would appeal to passive investment funds.

China Tower offered 43.114 billion shares at a range of HK$1.28 to HK$1.56 each, aiming to raise as much as HK$68.1 billion, the largest IPO in the world in nearly four years. Of the offer, 5 per cent was for retail investors, with the rest in the international placement tranche mainly targeting institutional investors.

The company started taking orders from institutional investors on Monday and launched the offer on Wednesday. The stock is expected to debut on August 8.

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08-08-2018, 01:14 PM.
Post: #2
RE: China Tower’s IPO gets cool retail response
China Tower opens with a whimper in Hong Kong debut as investors tire of stock offerings

Laura He
PUBLISHED : Wednesday, 08 August, 2018, 9:28am
UPDATED : Wednesday, 08 August, 2018, 12:51pm

China Tower, the US$6.9 billion stock sale that has been hogging headlines as the world’s largest initial public offering (IPO) of 2018, opened with a whimper in Hong Kong, extending the trend of lacklustre debuts as investors appear to have grown tired of blockbuster stock sales.

Shares of the Beijing-based company traded for the first time at HK$1.26 each, unchanged from their offer price, even as China Tower offered them at the bottom of a price range.

They traded between HK$1.26 and HK$1.29 before closing the morning session flat at HK$1.26. The price reflected a market cap of HK$54.3 billion. Still, it was the second most heavily traded stock on the market, with a half-day turnover of HK$4 billion.

The company, which operates the telecommunications towers for the world’s biggest cellular phone networks, raised at least HK$54.3 billion (US$6.9 billion) in its IPO, making it the largest global offering since Postal Savings Bank of China’s raised US$7.6 billion in 2016.

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08-08-2018, 05:33 PM. (This post was last modified: 08-08-2018, 05:33 PM by soros.)
Post: #3
RE: China Tower Corporation (0788.HK)
IPOs are not situations for valuebuudies /value investors . Many of the IPO participants are very short term punters and will sell on the first day of listing if there is profit to be captured.

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08-08-2018, 05:34 PM.
Post: #4
RE: China Tower Corporation (0788.HK)
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"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster

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