China Tower prepares for world's biggest IPO in four years

State-owned China Tower is preparing to go public in what is expected to be the biggest IPO since Alibaba in 2014. The company operates nearly 99 percent of China's transmission towers and leases them to its three carriers. It's expected to play a crucial role in the introduction and expansion of 5G networks across China over the coming decade.

China Tower is preparing to raise $8.7 billion in the August IPO in Hong Kong according to Bloomberg and compared to other telecom infrastucture companies, it's gargantuan with revenue of over $10 billion last year. Bloomberg claims that it could have a valuation of up to $35 billion with proceeds from the IPO going to help its shareholders, the country's cellular operators and cover the costs involved in the 5G rollout.

That rollout is set to be both expensive and extensive, with the three state carriers expected to spend $32 billion on the buildup. It hasn't been plain sailing, however, with President Trump's trade war heightening fears that U.S. technology crucial to the project could become unavailable. Given the precarious trade situation, there is speculation that Beijing may move to cut down on its dependence on important American technology such as chipsets and software.