World's biggest IPO in 2 years shows China's 5G ambitions

China's latest blockbuster IPO is set to help the country become a 5G powerhouse.Telecom company Chin...

Posted: Aug 8, 2018 11:34 AM
Updated: Aug 8, 2018 11:34 AM

China's latest blockbuster IPO is set to help the country become a 5G powerhouse.

Telecom company China Tower's Hong Kong debut on Wednesday is the world's biggest stock listing since Postal Savings Bank of China nearly two years ago. China Tower raised $6.9 billion from investors, valuing it at nearly $28 billion.

The state-owned firm is central to China's ambitions to become a global leader in 5G technology, which will eventually be used to run self-driving cars, virtual reality and smart cities.

China Tower is the world's biggest developer of cell-phone tower sites. The company was formed out of the networks of China's three big, state-owned wireless carriers and has a near monopoly in the country.

Related: What is 5G?

"Its role in rolling-out 5G-capable infrastructure is very important," said Kenny Liew, a telecommunications analyst at research firm Fitch Solutions.

By placing responsibility for building these networks into the hands of one company, the Chinese government is hoping that 5G can be rolled out more quickly and efficiently, Liew added.

A study released by Deloitte this week found that China has a strong track record of rapidly building telecommunications networks.

5G will need thousands of new wireless sites, many of which must be put on lamp posts and utility poles in densely populated areas.

Related: Here's why 5G is the future

China Tower built roughly 460 cell sites a day last year, according to Deloitte. Whereas the United States today has fewer than five cell sites per 10,000 people, China has more than 14.

China Tower says it plans to use about 60% of its IPO proceeds to build out and improve network infrastructure.

The Chinese government wants 5G deployed on a large commercial scale by 2020, and China's major carriers have all promised to meet that goal.

Despite the buzz around 5G, China Tower is the latest big tech listing to get a lukewarm reaction from investors in Hong Kong.

The company's shares were priced at the bottom end of its IPO range. And on their trading debut in Hong Kong on Wednesday, they traded flat.

Last month, Chinese smartphone maker Xiaomi went public with a lower-than-expected valuation of about $54 billion. The shares sank as much as 5.9% on their first day of trading after also earlier pricing at the bottom of their range.

-- Julia Horowitz contributed to this report.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 319511

Reported Deaths: 7368
CountyCasesDeaths
DeSoto22267267
Hinds20657421
Harrison18401317
Rankin13868282
Jackson13681248
Madison10239224
Lee10052176
Jones8458167
Forrest7824153
Lauderdale7257242
Lowndes6501150
Lamar634088
Lafayette6303121
Washington5419136
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Panola4665110
Oktibbeha466098
Pearl River4600147
Marshall4572105
Warren4440121
Pontotoc425073
Union415677
Monroe4155135
Neshoba4059179
Lincoln4008112
Hancock386487
Leflore3515125
Tate342386
Sunflower339391
Pike3368111
Alcorn324272
Scott319774
Yazoo314171
Adams305886
Itawamba305078
Copiah299666
Coahoma298484
Simpson298189
Tippah291868
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Leake271774
Marion271280
Covington267283
Wayne264442
Grenada264087
George252051
Newton248663
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Jasper222148
Attala215073
Chickasaw210559
Holmes190374
Clay187754
Stone187433
Tallahatchie180041
Clarke178980
Calhoun174032
Yalobusha167840
Smith164034
Walthall135347
Greene131833
Lawrence131024
Montgomery128643
Noxubee128034
Perry126738
Amite126242
Carroll122330
Webster115032
Jefferson Davis108033
Tunica108027
Claiborne103130
Benton102325
Humphreys97533
Kemper96629
Franklin85023
Quitman81916
Choctaw79118
Wilkinson69432
Jefferson66228
Sharkey50917
Issaquena1696
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Alabama Coronavirus Cases

Cases: 548323

Reported Deaths: 11288
CountyCasesDeaths
Jefferson809531565
Mobile42066826
Madison35663525
Tuscaloosa26162458
Shelby25595254
Montgomery25081612
Baldwin21839313
Lee16265176
Calhoun14718325
Morgan14626285
Etowah14171363
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Houston10764288
Elmore10295213
Limestone10182157
St. Clair10160251
Cullman9941201
Lauderdale9596249
DeKalb8967189
Talladega8458184
Walker7335280
Autauga7230113
Blount6944139
Jackson6922113
Colbert6414140
Coffee5627127
Dale4929114
Russell454941
Chilton4472116
Franklin431083
Covington4273122
Tallapoosa4136155
Escambia401780
Chambers3726124
Dallas3607156
Clarke352961
Marion3242106
Pike314078
Lawrence3129100
Winston283572
Bibb268464
Geneva257581
Marengo250665
Pickens236862
Barbour234659
Hale226878
Butler224071
Fayette218162
Henry193843
Cherokee187245
Randolph187044
Monroe179341
Washington170439
Macon162951
Clay160159
Crenshaw155657
Cleburne153244
Lamar146537
Lowndes142054
Wilcox127030
Bullock124242
Conecuh113430
Coosa111429
Perry108626
Sumter105732
Greene93534
Choctaw62025
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