China Telecom Launches Scaled-Down IPO

China Telecom has relaunched a drastically scaled-down initial public offering in a last-ditch effort to rescue its once-massive share sale in Hong Kong and New York, according to sources familiar with the deal.

The firm, a unit of China’s dominant fixed-line carrier, hopes to raise between $1.4 billion and $1.7 billion, according to an e-mail sent to fund managers and confirmed by sources familiar with the deal.

The revised deal is about 55% smaller than previously planned.

The state-owned carrier plans to sell 7.56 billion shares, to be listed on the New York Stock Exchange and the Hong Kong Stock Market.

It had planned to sell as many as 16.8 billion shares.

Following pricing of the shares, trading in the stock is tentatively set for Nov. 14 in New York and the following day in Hong Kong, underwriters said.