China’s biggest stock market listing in a decade — China Mobile — has, in some ways, been an unexpected success story. Its public share offering, in January, was significant not only for the amount of cash raised, but also for accelerating investment flows between China and the rest of the world.
However, in raising Rmb48.7bn ($7.5bn) on the Shanghai stock exchange, the world’s biggest telecoms operator by subscribers was making something of a comeback — having been kicked out of New York markets, under US government sanctions targeting companies with alleged military links.
Since that homecoming listing, China Mobile’s share price has risen by about 10 per cent — a rare feat in a falling market. And it is more impressive still given China Mobile’s offer price, of Rmb57.58, had been at a 40 per cent premium to the closing price of its Hong Kong-listed shares.