Xingchen Communications, one of the three main wireless coverage system suppliers in China, will soon initiate its initial public offering in Hong Kong to raise about US$100 million for developing 3G services.
The company's exclusive sponsor for the IPO will be JPMorgan. Xingchen Communications plans to start public share bidding on June 21 and formally get licensed on the Hong Kong main board in July.
The other two Chinese domestic wireless coverage system suppliers, Comba Telecom System Holdings and China GrenTech, have already listed in Hong Kong and NASDAQ, respectively.
Xinchen Communications mainly provides wireless coverage for regions that have weak signal or no signal, like the mountainous areas, tunnels and expressways. Its main clients include China Mobile and China Unicom. In 2006, Xingchen Communications achieved CNY134 million in net profit, which was an increase of 131% over the same period of the previous year.