Part of China Unicom Ltd.’s initial public offering in June of between $4 billion and $5 billion is scheduled to be used to fund the company’s $12.1 billion in capital expenditures planned through 2002, a merchant banking source told Reuters.
The offering and spending plan are designed to allow China Unicom to compete with China Telecom, the country’s largest telecommunications provider.
“About 77 percent of the capital expenditure will be used to develop and expand its cellular business and the remaining to build up its Internet arm and other businesses,” the source told Reuters.
