State-run China Netcom, the country's second largest fixed-line telephone operator, has raised US$1.14 billion (euro 900 million) in Asia's biggest telecommunications share listing this year, its lead manager Goldman Sachs said Wednesday.

Associated Press

China Netcom Group Corp. (Hong Kong) Ltd. priced its Hong Kong initial public offering at 8.48 Hong Kong dollars (US$1.09; euro 0.84) per share, and has sold 1.046 billion shares, or a 16.2 percent stake, the bank said.

China Netcom reportedly had been expecting to raise US$1.5 billion (euro 1.16 billion) through listings in New York and Hong Kong. The company will list in the United States on Nov. 16 and in Hong Kong the day after.

China Netcom is issuing 47.5 million American Depositary Shares at a price of US$21.82 (euro 16.90) each, but Goldman Sachs didn't say how many of those shares had been sold.

Goldman Sachs, Citigroup and China International Capital Corp. are joint sponsors and joint lead managers of the deal.

China Netcom has networks in six provinces and cities in northern China, operations in Shanghai and Guangdong, a nationwide broadband business and an overseas network it bought last year from Asia Global Crossing.

The company's fixed-line service enjoys a virtual monopoly in northern China. But the carrier posted a net loss of 11.11 billion yuan (US$1.35 billion; euro 1.10 billion) in 2003 amid intense restructuring ahead of its share listing.

State media reported that the company has assets worth 240 billion yuan (US$29 billion; euro 22.83 billion).

China Netcom was formed by a government restructuring of the former state phone monopoly that set up two corporations: China Netcom Group in the north and China Telecom in the south.