What’s new: QuantumCTek Co. Ltd., a developer of quantum-secure products, said it will issue 24.1 million shares to a unit of China Telecom for 78.94 yuan ($11) apiece, making the state-owned wireless carrier its largest shareholder.
The company said it will raise 1.9 billion yuan from the private placement, which will be used to replenish its working capital.
After the completion of deal, China Telecom Quantum Information Technology Group Co. will hold a 23.08% stake in QuantumCTek. Additionally, China Telecom Quantum entered into a concerted action agreement with the company’s current major shareholder USTC Holdings as well as its cofounders, making China Telecom hold a total of 41.36% of the voting rights. USTC Holdings is an investment platform under Hefei’s University of Science and Technology of China.
The context: QuantumCTek, originating from the quantum information research team at the University of Science and Technology of China, was founded in 2009 by Pan Jianwei, an academic of the Chinese Academy of Sciences, and Peng Chengzhi, a researcher at the university.
The company made headlines in July 2020 when it debuted on Shanghai’s Nasdaq-like STAR market, soaring tenfold on its first day of trading, with an issue price of 36.18 yuan a share and a closing price of 370.45 yuan. Since then, its stock price has fluctuated, hitting a low of 71.69 yuan last month.
QuantumCTek provides quantum secure communication network equipment, application products, core components and network management software, with applications ranging from metropolitan to intercity and even intercontinental secure communication.
QuantumCTek has yet to turn a profit due to high spending on research and development. The company reported a net loss of 159 million yuan in 2023.
Contact reporter Denise Jia (huijuanjia@caixin.com)
