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AsiaInfo to list in Hong Kong within two weeks
Posted on Thursday, 06 December 2018 12:44
AsiaInfo Technologies is kicking off a listing that values the biggest telecommunications software product and related service provider in China at HKD 7.49 billion and HKD 9.64 billion (USD 958.99 million and USD 1.23 billion).

The British Virgin Islands-incorporated company is selling 85.65 million shares at HKD 10.50 to HKD 13.50, which equates to unaudited pro forma adjusted consolidated net tangible assets of HKD 1.57 to HKD 1.92 per stock.

AsiaInfo is expected to price the initial public offering (IPO) on 11th December, ahead of being admitted to trading on the Hong Kong bourse on 19th December.

Proceeds will fund research and development activities to increase its presence and share in the emerging data-driven operation services, Internet of Things and intelligent network industry sectors.

Money will also repay outstanding bank loans, bankroll strategic investments and acquisitions and support working capital.

AsiaInfo has a telecommunications software product market share of 25.3 per cent, based on revenue in 2017, and accounted for 50.0 per cent of the country’s business support systems (BSS) segment, as measured by turnover.

The group is actively expanding its presence in China’s non-telecoms enterprise software sector and has customers in the cable television, postal and financial services industries.

Competitors range from Huawei and ZTE to Shenzhen Tianyuan DIC and Oriental Nations.

The market size of China’s telecom software product and related service market by revenue reached CNY 18.30 billion in 2017, and its BSS segment by revenue totalled CNY 9.20 billion last year.

Zephyr, the M&A database published by Bureau van Dijk, shows 2,375 IPOs have been announced globally in 2018 to date.

A total 134 of these listings target software publishers and custom computer programmers and the largest is currently the completed USD 1.63 billion first-time share sale of Walnut Street.

© Zephus Ltd