Why China Tower was valued at 7.1x
Comparing tower cash flows with international peers, highlighting risks and opportunities in 5G
One month on from China Tower Corporation’s (CTC’s) IPO, TowerXchange reflect on the valuation, future risks and opportunities for the world’s largest towerco. Speaking to financial commentators and analysts, while enthusiasm remains intact that the towerco business model has been successfully introduced into China, critical differences in CTC’s pricing models and cash flows, and uncertainty surrounding how 5G will be deployed in China, have combined to suppress valuation – at least for now.
China Tower Corporation was listed on the Hong Kong stock exchange in August 2018, selling 25% of their enlarged share capital for US$6.9bn (at HK$1.26