China Mobile Ltd. said it plans to sell billions of dollars’ worth of shares in Shanghai, days after learning it would definitely be ejected from U.S. markets under a Trump-era investment blacklist.
The company, the world’s largest mobile operator by subscribers, said late Monday it planned to list on the Shanghai Stock Exchange. As part of that plan, China Mobile will issue up to 964.8 million shares. That implies a deal size of nearly $6.1 billion based on its shares’ closing price in Hong Kong on Monday.
On May 6, China Mobile and its two smaller rivals, China Telecom Corp. and China Unicom (Hong Kong) Ltd. , lost appeals against being kicked off the New York Stock Exchange. The Big Board is moving to delist them to comply with an investment ban introduced by former President Donald Trump.
China Mobile didn’t say the Shanghai offering was linked to the U.S. delisting. Chinese authorities and investors have more broadly wanted to make it easier for domestic investors to invest in more of China’s corporate champions and its fast-growing technology companies.
The telecoms group said it plans to spend the deal’s proceeds on projects such as faster mobile networks, new cloud infrastructure and superfast broadband.