China Unicom will officially delist from the NYSE, and the three major operators will meet in A shares

At present, China Telecom’s A-share listing has been IPO after a meeting, and China Mobile has disclosed that it has returned to the A prospectus.

On July 23, China Unicom announced that it will terminate the American Depositary Securities Program (ADR) on October 18 this year, and the company will officially delist from the New York Stock Exchange.

China Unicom will officially delist from the NYSE, and the three major operators will meet in A shares

Source: China Unicom

The announcement shows that the company’s delisting of American depositary securities will take effect on May 18, 2021. In view of the delisting, the company’s board of directors has resolved to terminate the American Depositary Securities Program and has issued a notice to terminate the program to the company’s American Depositary Securities Agency, Bank of New York Mellon.

The announcement stated that on July 20, 2021, the company has issued approximately 4.2 million American depositary securities, accounting for approximately 0.1% of the company’s total issued shares. The holders of American Depositary Receipts can return the American Depositary Receipts to the Bank of New York Mellon before the expiry date (October 18, 2021, Eastern Time) in exchange for the company’s common stock. The securities can be exchanged for 10 common shares of the company. The company’s common stock can be traded on The Stock Exchange of Hong Kong Limited

The delisting incident of the three major operators originated at the end of 2020. The New York Stock Exchange issued a statement announcing that in order to comply with the Trump administration’s executive order prohibiting Americans from investing in “Chinese companies with military backgrounds”, the Delisting procedures for telecom operators.

Subsequently, the NYSE repeatedly “changed faces” repeatedly. On January 5, the NYSE announced that it would no longer promote the delisting of the three major operators in the United States. On January 6, the New York Stock Exchange “due to complying with an executive order of the Trump administration” and again announced that it would continue to proceed with delisting. On May 6, the committee maintained the delisting decision of the three major operators.

At this point, the half-year-long delisting storm will come to an end. Because the US ADR accounts for too small a proportion of the operator’s total equity, most industry insiders believe that the delisting will have little impact on the operator. A spokesperson for the China Securities Regulatory Commission once introduced that the total market value of the three major operators’ ADRs is less than 20 billion yuan (the same unit below), accounting for only 2.2% of the total equity of the three companies, of which China Telecom only has about 8 %. 100 million yuan, China Unicom only has about 1.2 billion yuan.

In addition, after deciding to delist in the United States, China Telecom and China Mobile have clearly returned to A-share listings. Together with China Unicom, which is already listed on A-shares, the three major operators will meet again in A-shares in the near future.

On July 22, China Telecom’s A-share IPO has been approved by the China Securities Regulatory Commission’s Issuance Examination Committee, and it has been less than 5 months since China Telecom’s announcement in March this year announcing the return to A. The prospectus shows that China Telecom plans to publicly issue no more than 12.093 billion A shares, and plans to raise 54.4 billion yuan.

China Mobile in May 17, disclosing the back to A prospectus, said it would apply to the Shanghai Stock Exchange main board listed, the funds raised to be used for: 5G fine mesh network construction project, cloud resources, new infrastructure projects, Gigabit Chile Home construction projects, smart middle-station construction projects, new generation information technology research and development and digital intelligence ecological construction projects.

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