China Telecom, the state-owned fixed-line operator, has raised $1.4bn (€1.4bn) from its initial public offering, after cutting the size of the issue and pricing at the bottom of its indicative range.

The deal was originally due to price last week, but ground to a halt because of poor investor demand. Reports estimated that only about 75% of the offer would be taken up, so bookrunners Morgan Stanley and Merrill Lynch more than halved the number of shares on offer to 7.6 billion and relaunched the IPO.