China Unicom revealed plans to consider spinning off and listing its smart internet technology unit on a mainland stock market as it looks to capitalise on gains in H1, becoming the latest operator in the nation to discuss a move on a domestic exchange.
In a statement, China Unicom remarked the spin-off of its Smart Connection Technology unit requires approval from the board and shareholders, noting the timing and size of the IPO need to be worked out.
The operator holds about a 69 per cent interest in the subsidiary, which develops technology for connected vehicles with a focus on cloud platforms, big data analysis, and operation and maintenance management tools.
China Unicom’s net profit grew 21.1 per cent year-on-year to CNY9.2 billion ($1.4 billion) in H1, on operating revenue of CNY164.2 billion, up 9.2 per cent.
Rival China Mobile yesterday (19 August) disclosed plans to raise about CNY56 billion in a share sale in Shanghai, while China Telecom previously unveiled a plan for a multi-billion dollar listing on the same exchange.
All three state-owned operators were delisted from the New York Stock Exchange in May due to US national security concerns.