According to the Beijing Daily, China Mobile Communications Group announced that the A-share shares issued by the company will be listed on the Shanghai Stock Exchange on January 5.
China Mobile's return to A-share IPO was issued at 57.58 yuan per share, corresponding to a price-earnings ratio of 12 times. The Company issued 856 million new shares to the public and granted the joint lead underwriters an over-allotment option (commonly known as "Green Shoes") not exceeding 15% of the initial number of shares to be issued. If the "Green Shoe" is fully exercised, the total number of shares issued will be expanded to 973 million shares. After the full exercise of the "green shoe", the total fundraising scale of China Mobile's A-share IPO will reach 56 billion yuan, becoming the largest A-share IPO project in the past decade.
Since the A-share hit is no longer "stable and not losing", according to the previously disclosed issuance results, China Mobile was abandoned by online investors for 743 million yuan, setting a record for the largest abandonment. The number of shares waived by online and offline investors in this offering was all underwritten by the joint lead underwriters, and the number of shares was 13.130958 million shares.
As the industry's "Big Mac", as of the end of June this year, China Mobile served 946 million mobile users and 251 million 5G package customers, ranking first in the world. According to financial data, from January to June 2018, 2019, 2020 and 2021, China Mobile's operating income was 736.8 billion yuan, 745.9 billion yuan, 768 billion yuan and 443.6 billion yuan, and the net profit attributable to the mother was 116.7 billion yuan, 106.3 billion yuan, 107.8 billion yuan and 59.1 billion yuan, respectively.
To be honest, seeing China Mobile's listing this time makes people feel more worried, so in the face of China Mobile' largest IPO project in history, what should we think? And the amount of abandoned purchases has set a record, how can we understand it?
First of all, from the perspective of the market development of the entire China Mobile, it is a very normal phenomenon for China Mobile to return to the listing, but because the disk surface of China Mobile itself is too large, the more this kind of large-cap stock, the higher the risk it contains, and the current China Mobile belongs to a very high-risk state. Because this kind of large-cap stock wants to really pull up, the amount of funds required is too large, so in general, when such a large-cap stock is listed, the market is most worried about whether the large-cap stock will lead to the risk of the entire market crash, after all. The listing of large-cap stocks requires massive financial support, and for the relatively limited amount of liquidity, it is undoubtedly a very great pressure to support the sharp rise of a large-cap stock, so the pressure on the general large-cap listing market is relatively large.
Secondly, let's look at the current pricing of the entire China Mobile stock price is relatively high, there is still a big gap between the stock price of more than 50 yuan and the price of its Hong Kong stocks, this problem has actually appeared when China Telecom Co., Ltd. was listed, the main reason is that the value of China Mobile's own Hong Kong stocks and the value of A shares should be consistent, then there is such a big gap between the pricing of the two, it is likely to lead to market arbitrage, and the most direct result of market arbitrage is the decline or even the break of the opening. This is also the core reason why China Telecom's stock price fell below the issue price, so everyone is also very worried about whether China Mobile will also repeat the mistakes of China Telecom.
Third, from the perspective of long-term development, the fundamentals of China Mobile itself are still better than China Telecom, whether it is user contact or core user groups, including the influence of users, China Mobile's advantages in this regard are still very obvious. So from the perspective of the risk of decline, the fundamentals of China Mobile's downside risk are actually better than China Telecom's, so in the face of China Mobile's listing, although there are many market uncertainties, we must also maintain a relatively calm attitude to look at China Mobile's market advantages, so as to whether there will be a trend similar to China Telecom, it still needs further observation and analysis.