Hutchison Whampoa Singapore IPO

Hutchison Whampoa's listing of its unit could raise US$6 billion, making it largest-ever IPO here. Impressive, isn't it?

Then again there's a rather negative remark from the Wall Street Journal, "Hutchison Eyes $6 Billion IPO for Ports Unit", which you may want to take note: "The port assets being listed are mature businesses that don't necessarily offer the growth potential of other ports operations, which could limit interest."

HONG KONG conglomerate Hutchison Whampoa is lining up a initial public offering (IPO) that could raise up to US$6 billion and become Singapore's biggest-ever listing.

The firm headed by Asia's richest man Li Ka-Shing - he is worth an estimated US$24 billion - wants to spin off its ports in Hong Kong and southern China into a business trust.

The huge listing will be a coup for the Singapore Exchange (SGX), which, unlike Hong Kong, has developed the regulatory regime to accommodate such trusts.

Hutchison did not disclose the amount it hopes to raise but Dow Jones Newswires cited unnamed sources as saying the IPO could generate between US$3 billion and US$6 billion.

That means it could beat SingTel's record $4 billion IPO in 1993.

The listing, which was heralded in a statement lodged with the Hong Kong Stock Exchange on Tuesday, will be completed by March, said Reuters, quoting financial publication IFR.

From Straits Times, "Hutchison Whampoa plans massive S'pore offering".

Update on 28/02: take note of the offering price between US$0.91 and US$1.08. Still thinking & looking forward to reading more in its prospectus.

Hutchison Port Holdings Trust said on Monday that it plans to raise as much as US$6.4 billion in an initial public offering (IPO) in Singapore.

The IPO by Hong Kong tycoon Li Ka-shing's ports unit will be the biggest in Singapore's history.

In a prospectus filed in Singapore, Hutchison Port Holdings said it will offer a total of 3.9 billion shares to institutional investors and the public at an offer price ranging between US$0.91 and US$1.08 per unit.

The US$6.4 billion proceeds from the IPO assume the company is pricing its units at the top end of the range, investment by cornerstone investors and Hutchison exercising the over-allotment option.

If the overallotment option is not exercised, Hutchison would raise US$5.8 billion at the top end of the range, which includes proceeds from cornerstone investors.

The deal has attracted eight cornerstone investors including big names like Temasek Holdings, US hedge fund manager Paulson & Co and Cathay Life Insurance who will put in US$1.6 billion.

According to the prospectus, it will be the first publicly traded business trust backed by port assets.

The assets of 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.

The listing comes at a time when sea-borne trade in Asia is experiencing a boom with many shipping firms diverting more container vessels to serve their Asian customers.

From Channel NewsAsia, "Hutchison Port Holdings Trust plans to raise US$6.4b in Singapore IPO".


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