China Mobile boosts share sale to world’s second-biggest in 2021

China Mobile Ltd, the country’s largest wireless carrier by revenue, is set to raise $8.78bn from its Shanghai listing, making it the world’s second largest offering this year - thanks in part to state support.The state-run company, which was removed from the New York Stock Exchange earlier this year due to an investment ban ordered by former US president Donald Trump, will exercise its over-allotment option for the offer due to strong demand from domestic retail and state investors, according a Shanghai bourse filing.That would enable China Mobile to raise a total of 56bn yuan from the sale, making it the world’s second largest offering this year after electric pickup truck maker Rivian Automotive Inc’s $13.7bn IPO, Bloomberg data show. It would also become one of the 10 largest share offers for the nation’s domestic stock market in a decade. Companies listing in mainland China had raised nearly a record $80 billion this year, up about 17% from 2020.The A-share offer has attracted a total of 19 strategic investors, mostly state-owned entities including the National Council for Social Security Fund, China-Africa Development Fund, China Culture Industrial Investment Fund, National Integrated Circuit Industry Investment Fund, State Grid Yingda International Holdings Co, State Development & Investment Corp, China FAW Group Co, and state-run insurers like China Life Insurance Co - as well as the Brunei Investment Agency - the filing shows.The NYSE suspended trading in China Mobile in January, along with the Asian nation’s other major state-owned operators, China Telecom Corp and China Unicom Hong Kong Ltd. That development followed an order barring US investments in Chinese companies the Trump administration deemed a threat to national security. China Telecom listed in Shanghai in August after raising more than $7bn. China United Network Communications Ltd is already trading on the exchange.The strategic investors for China Mobile will pay 24.3bn yuan for 49.9% of its planned A-share offer of 845.7mn shares ahead of exercise of the green shoe option, and they will be subject to lock-up period from 12 months to 36 months.All of the over-allotment portion of the A-share offer, or 126.86mn shares, will be allocated to retail investors, according to the filing. Earlier this week, China Mobile said its A-share issue was 805.68 times covered from retail investors’ subscription.Proceeds from the listing in the Chinese financial hub will be used to fund 5G network expansion, cloud infrastructure, smart-living projects and tech development that will cost the company 157bn yuan in total, China Mobile has said.China International Capital Corp and Citic Securities Co are sponsors of China Mobile’s A-share offer. The main underwriters include Huatai United Securities Co, BOC International (China) Co and China Merchants Securities Co.