MARKETS & INVESTING | Staff Reporter, Hong Kong

China Tower raises US$6.9b in another lacklustre debut

It sold 43.1 billion shares after pricing its IPO at the low end.

Bloomberg reports that Chinese wireless infrastructure tower China Tower has raised US$6.9b in another disappointing share sale priced at the low end of a marketed range.

Also read: Hong Kong's thriving IPO scene threatened as retail investors pull out

The company, which is responsible for the construction, maintenance and operations of telecommunications towers and infrastructure across China, sold a total of 43.1 billion shares at $1.26 apiece but the shares were earlier marketed at $1.26 to $1.58 each, according to an earlier exchange filing.

Earlier reports claim that China Tower was said to be aiming to raise up to $8.8b in its float. 

The company is the second high-profile IPO to price at the low end in recent weeks after smartphone maker Xiaomi similarly made a similarly disappointing debut on the back of rising trade jitters.

“The market continues to be very volatile,” Hao Hong, head of research at Bocom International Holdings Co. in Hong Kong told Bloomberg. “Because of the unpredictability of Mr. Trump, people are finding it very difficult to figure out which sectors have been priced in and by how much.”

Here’s more from Bloomberg

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