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Non-Tech : Amati investors

AMTX 1.585

+14.0%

Jan 2 9:30 AM EST

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To: Eric Goethals who wrote (27734)	10/23/1997 11:22:00 AM
From: Chemsync	of 31386

[China Telecom IPO] Hi Eric, I'm reminded by todays market action of German re-unification. How would you like to digest Red China? I hope the new German Republic has been faring well. sg Red faces tipped for China Telecom debut ANDREW CHETHAM Today's US$3 billion flotation of China Telecom (Hong Kong) (CTHK) last night looked to be heading for an embarrassing debut after its shares opened last night in New York below the issue price. CTHK, the biggest listing ever staged in Asia outside Japan, begins trading on the local exchange this morning. If its shares fall below the issue price of HK$11.68, it will be the first time a key red-chip listing has failed to open at a premium. While the company and its bankers could lay the blame on the extraordinary market conditions in Hong Kong, and in the region, it would still be a blow that the landmark listing failed to provide a premium for investors. The listing will raise HK$35 billion for CTHK, which is 75 per cent owned by China's Ministry of Posts and Telecommunications. The company's American Depositary Receipts (ADRs) opened on the New York exchange last night at US$28.50, or US$2 lower than the issue price of US$30.50. One ADR represents 20 CTHK shares. A similar fall in Hong Kong would see about 77 HK cents knocked off the value of its shares, pushing the price below HK$11. The grey market price in London late last night also suggested the stock would open below HK$11. Many observers in Hong Kong expect the issue's global co-ordinator, Goldman Sachs, will enter the market and buy stock to help support the price. Goldman Sachs would not comment. Other sources close to the underwriting syndicate have indicated in the last few days that mainland money is available to help support the flotation and to make sure investors see a profit. Many analysts admitted that no one really knew what would happen on the stock's Hong Kong debut. After a third day of sharp falls in the red-chip sector many said the stock was looking very expensive compared to the rest of the sector. The company revealed yesterday the offer was 35 times over-subscribed. Archived Stories: Mainland back-up claim as CTHK prepares for debut Mingly Corp to pay $1.37b for portion of China Telecom China Telecom valued at $135b ÿ

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