Categorized | Singapore Trading News

Hutchison Port Said to Lower Amount Sought in Singapore IPO

Hutchison Port Said to Lower Amount Sought in Singapore IPO

March 10 (Bloomberg) — Hutchison Port Holdings Trust reduced the maximum amount it may raise in southeast Asia’s biggest initial public offering to $5.56 billion, two people with knowledge of the matter said.

The company, which manages Chinese port assets for billionaire Li Ka-shing’s Hutchison Whampoa Ltd., is offering about 5.4 billion units in a trust at 99 U.S. cents to $1.03 each in Singapore, said the people, who declined to be identified before an announcement. The units were initially offered at 91 cents to $1.08 each, according to a sale document sent to investors on Feb. 28.

Investors are cooling on Asian equities as unrest in the Middle East pushes oil prices higher and accelerating inflation from China to India prompts central banks to boost borrowing costs. The MSCI Asia Pacific Index has slipped 1 percent this year after gaining 14 percent in 2010.

“They are trying to ensure the deal will go off with a very solid book, so it’s the best outcome for both Hutchison and potential investors in the trust,” said Anderson Chow, an analyst at Macquarie Capital Securities.

China Hongqiao Group Ltd., the country’s largest privately owned aluminum producer, in January scrapped a plan to raise as much as $2.2 billion from a Hong Kong IPO, citing “deterioration in market conditions,” according to a Jan. 31 filing to the city’s stock exchange.

Cornerstone Investors

The narrower pricing range was earlier reported by the Wall Street Journal on its website. Laura Cheung, a spokeswoman at Hutchison Whampoa in Hong Kong, declined to comment.

Hutchison Port Holdings Trust will own assets including container terminals in Hong Kong and neighboring Guangdong province. Hutchison will manage the trust and retain a 25 percent stake, according to a Jan. 18 statement. The sale may still surpass the $4 billion raised in Singapore Telecommunications Ltd.’s 1993 IPO and the total amount raised in IPOs in the city-state last year.

Cornerstone investors led by Capital Research & Management Co. and Paulson & Co. will invest $1.62 billion in the IPO, according to the prospectus filed with the Monetary Authority of Singapore.

Capital Research will invest $634 million in the offering, according to the term sheet. Paulson & Co., managed by John Paulson, will buy a $350 million stake and Lone Pine Capital LCC will invest $186 million, it said. Jenkin Hui and family, Singapore’s state investment company Temasek Holdings Pte, Cathay Life Insurance Co. and Metropolitan Financial Services Ltd. will each invest $100 million, and Ally Holding Ltd. will buy a $50 million stake.

Goldman Sachs Group Inc. and Deutsche Bank AG are among banks managing the sale. Edward Naylor, a Hong Kong-based spokesman for Goldman Sachs, and Mark Bennewith, a Deutsche Bank spokesman in Singapore, declined to comment.

–With assistance from Weiyi Lim in Singapore. Editors: Lars Klemming, Philip Lagerkranser.

Adapted from

Leave a Reply


Symbol Bid Ask Spread
EURUSD 1.22600 1.22620 2
GBPUSD 1.38910 1.38940 3
USDCAD 1.24770 1.24800 3
USDJPY 110.610 110.630 2
USDCHF 0.96050 0.96110 6
AUDUSD 0.80000 0.80030 3
NZDUSD 0.72800 0.72850 5
EURGBP 0.88250 0.88280 3
EURCHF 1.17760 1.17840 8
EURJPY 135.620 135.650 3
AUDJPY 88.480 88.530 5
GBPJPY 153.650 153.710 6
XAUUSD 1331.50 1331.90 40
XAGUSD 17.001 17.051 5