IPO China Netcom: China Netcom To List in the U.S. Tuesday
From Pacific Epoch:
"China Netcom will list on the New York Stock Exchange on Tuesday and the Hong Kong main board on Wednesday. China Netcom will announce stock allocation results Tuesday. China Netcom was 28 times oversubscribed by Hong Kong individual investors and 18 times oversubscribed globally. China Netcom set its IPO prices at HKD8.48 and US$21.82 last week. China Netcom may increase share issue by 15 percent one month after its IPO."
From ChinaTechNews: Why China Netcom Really Delayed Its IPO
"In the past weeks, China Netcom filed its prospectus for its long-awaited IPO. But we wondered why Netcom had been delaying its IPO, and now perhaps we have a disturbing reason why. "
"Now we come to the financials. Yes, there buried among all the nice data about growth and opportunities in the IPO prospectus is a rather disturbing bit of information. During the last year, as many investors waited for this IPO, the company delayed. You see, the company was really quite busy. The executives of China Netcom were busy draining the company of cash, so they could then do an IPO claiming China Netcom needs more cash. Buried in the notes to China Netcom's financials, we find that the company decided to make a dividend payment to its Chinese parent sometime last year, obviously before the IPO. And even in US dollar terms, this is serious money. It paid a whopping dividend of almost US$1 billion to its Chinese owners." Read More
More information from Pacific Epoch: China Netcom's Road To IPO