Beijing Xinwei Telecom Technology Inc, the core developer of
China's home-grown TD-SCDMA 3G standard, has failed in its bid for
an initial public offering (IPO) on the Shenzhen Stock
Exchange.
The China Securities Regulatory Commission (CSRC) said it had
rejected Xinwei Telecom's plan to issue up to 40 million new local
currency shares on the exchange. But the CSRC did not elaborate
further.
Officials from Xinwei Telecom declined to comment. But the
Beijing-based company plans to restart the IPO process in six
months, according to China Business News.
Xinwei Telecom, founded in 1995, is a joint venture between
Datang Group and US-based Cwill. The company has sole intellectual
property rights to the synchronous code division multiple access
(SCDMA) standard for wireless access service, the core technology
behind China's TD-SCDMA 3G standard.
Analysts said the setback would cloud the market prospects of
SCDMA, selected by China's Ministry of Information Industry as the
preferred solution to provide telephone services to rural
villages.
According to Xinwei Telecom's prospectus, the company has seen
brisk growth in the past three years. Its sales revenue was 1.09
billion yuan by the end of 2005, compared with 185 million yuan in
2003.
(China Daily January 26, 2007)