China Network Communications Group (China Netcom) has got the green light from Hong Kong's regulator to launch its US$1 billion initial public offering.

China Netcom is expected to raise at least US$1 billion from the offer, but probably less than the US$1.5 billion it originally targeted because its valuation has been trimmed. The company will sell 16% of its enlarged share capital to the public, less than the 25% it originally proposed. Goldman Sachs, Citigroup and China International Capital are arranging the share sale.

After it receives the approval, China Netcom will start a two-week pre-marketing, and will hold an investor presentation in the first week of November in Hong Kong, aiming to list the shares in the middle of the month.