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State-owned China Tower starts trading in Hong Kong

AFP  |  Hong Kong 

State-owned Tower -- the world's largest operator of -- kicked off its trading debut in today in the latest high-profile listing in the city.

Shares were at HK$1.27 (USD 0.16) in the first few minutes, slightly up on their IPO price of HK$1.26.

Tower is the world's largest IPO since Postal Savings Bank of China's USD 7.6 billion offering in 2016, according to data compiled by

But although Hong Kong's recent listings have grabbed headlines, investor confidence has been overshadowed by US-trade tensions and falling global markets.

raised USD 6.9 billion after pricing its initial public offering at the low end of the expected range.

The Beijing-based is the second prominent company to price at the low end recently, following Chinese maker Xiaomi's disappointing valuation in July.

Some observers say investors may see China Tower as a safe bet on the country's mobile market because of its government backing.

But others argue the fact it is a state-backed monopoly could limit growth due to lack of competition.

China Tower was established by China Mobile, and in 2014. They agreed to combine their tower assets by selling them to China Tower in 2015.

Hillhouse Capital, affiliates of and -- a subsidiary of -- are reported to be among the 10 cornerstone investors.

The company said at its IPO launch event in in July that "international companies and giant domestic companies" were among the cornerstone investors.

is seeking to become a destination for major IPOs after being snubbed by Alibaba's overseas listing in 2014.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, August 08 2018. 08:55 IST