China Netcom announced last week that they expect to collect $1.5 billion in their first IPO, 50% of which will be used to build a new communications network.

Netcom is reportedly taking this action to increase their competitiveness in order to stave off the challenge posed by China Telecom.

In a document submitted to the US Securities Exchange Commission, Netcom declared that it would provide a profit bonus as high as 40% to its investors.