China Netcom Plans IPO.The second largest Chinese fixed-line telecoms operator China Netcom China Netcom, full name China Netcom Group Corporation (Hong Kong) Limited, abbreviated CNC, was originally formed in August 1999 by the People's Republic of China government to enable inward investments to build high speed Internet communications in the country. Corp Ltd has retained the services of Citigroup Inc, Goldman Sachs The Goldman Sachs Group, Inc., or simply Goldman Sachs (NYSE: GS) is one of the world's largest global investment banks. Goldman Sachs was founded in 1869, and is headquartered in the Lower Manhattan area of New York City at 85 Broad Street. International, and China International Capital Corp to handle its initial public offering later this year.
The IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. is expected to raise between $1.5bn and $3bn, and is thought to be earmarked for the third quarter of 2004. The operator tentatively plans to list in both Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. and the United States.
China Netcom was formed in May 2002 after a government-ordered merger. It incorporates two small datacoms companies, China Netcom Corp and Jitong Network Communications Co, as well as 10 provincial telephone networks that formerly belonged to China Telecom Corp. During the past year, it has been restructuring its assets, and in 2002, it reported sales of CNY CNY
In currencies, this is the abbreviation for the China Renminbi.
The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 72bn ($8.69bn). It is thought to have total fixed assets valued at more than CNY 220bn ($26.58bn).
China Netcom has stated that between three to six of its most profitable networks, plus its Asia Netcom unit, would be part of the initially listed company. This a common practice in the Chinese market, where the state-owned parent puts its most profitable assets in the IPO company for the initial listing. The listed company then purchases the less profitable assets gradually over time, often at a discount. China Mobile, Chine chine
the animal's backline. Unico, and China Telecom have all followed similar practices in their IPOs.
The IPO should help China Netcom upgrade its networks, and match China Telecom Group that mainly runs the country's southern networks, in terms of enhanced corporate profile and the ability to tap into capital markets.