Li seeks US$6b in unit's IPO
Source: Agencies |
00:10 UTC+8 March 1, 2011
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Print Edition
Print Edition
HONG Kong tycoon Li Ka-shing's ports unit aims to raise as much as US$5.8 billion in its Singapore IPO, seeking to cash in on a recovery in global trade and provide investors with access to the booming infrastructure business on Chinese mainland.
The listing, southeast Asia's biggest ever, comes at a time when sea-borne trade in Asia is swelling and global container shipping firms are putting more ships and resources to serve Asian routes from Europe and North America.
The capital-raising could provide additional ammunition for Li, Asia's richest man, who is looking to make a big play on UK power assets through his Cheung Kong Infrastructure unit.
The deal has attracted big names including Singapore state investor Temasek Holdings, United States hedge fund manager Paulson & Co and Cathay Life Insurance, who will be putting in US$1.6 billion as cornerstone investors, according to the preliminary prospectus.
The assets of the Hutchison's subsidiary, Hutchison Port Holdings Trust, are located in Hong Kong and Shenzhen, two of the world's busiest container ports in 2009 with a total throughput of 39.2 million twenty-foot equivalent units.
It would be the first publicly traded business trust backed by port assets, according to the prospectus, and would exceed Malaysia's Petronas Chemicals' US$4.1 billion listing of 2010, which has so far been the biggest listing in the region.
"Given the size of HPH Trust, we expect the proposed IPO to attract significant investor interest," said Sean Quek, Singapore head of research at Credit Suisse.
"In addition to the potential direct impact on trading volume, the IPO could also set the path for business trusts and port-related companies' listings here."
Hutchison Whampoa, the world's largest container terminal operator, is spinning off HPH Trust in a separate listing in Singapore to tap regulations favoring trust-like companies.
With operations in 53 countries and about 220,000 employees worldwide, Hutchison operates ports and related services; property and hotels; retail; energy, infrastructure, investments and others; and telecommunications.
It chose Singapore over Hong Kong because the city-state has been an attractive site for infrastructure and real estate trusts, bankers said.
The listing, southeast Asia's biggest ever, comes at a time when sea-borne trade in Asia is swelling and global container shipping firms are putting more ships and resources to serve Asian routes from Europe and North America.
The capital-raising could provide additional ammunition for Li, Asia's richest man, who is looking to make a big play on UK power assets through his Cheung Kong Infrastructure unit.
The deal has attracted big names including Singapore state investor Temasek Holdings, United States hedge fund manager Paulson & Co and Cathay Life Insurance, who will be putting in US$1.6 billion as cornerstone investors, according to the preliminary prospectus.
The assets of the Hutchison's subsidiary, Hutchison Port Holdings Trust, are located in Hong Kong and Shenzhen, two of the world's busiest container ports in 2009 with a total throughput of 39.2 million twenty-foot equivalent units.
It would be the first publicly traded business trust backed by port assets, according to the prospectus, and would exceed Malaysia's Petronas Chemicals' US$4.1 billion listing of 2010, which has so far been the biggest listing in the region.
"Given the size of HPH Trust, we expect the proposed IPO to attract significant investor interest," said Sean Quek, Singapore head of research at Credit Suisse.
"In addition to the potential direct impact on trading volume, the IPO could also set the path for business trusts and port-related companies' listings here."
Hutchison Whampoa, the world's largest container terminal operator, is spinning off HPH Trust in a separate listing in Singapore to tap regulations favoring trust-like companies.
With operations in 53 countries and about 220,000 employees worldwide, Hutchison operates ports and related services; property and hotels; retail; energy, infrastructure, investments and others; and telecommunications.
It chose Singapore over Hong Kong because the city-state has been an attractive site for infrastructure and real estate trusts, bankers said.
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