Categorized | Singapore Trading News

Hutchison Port Trust Traded Below IPO Sale Price in Gray Market, BTIG Says

Hutchison Port Trust Traded Below IPO Sale Price in Gray Market, BTIG Says

Hutchison Port Holdings Trust, having raised $5.5 billion in the largest initial public offering this year, traded below its IPO price in the gray market as Asian equities fell following an earthquake in Japan.

Units of the container-terminal owner were sold for 98 cents yesterday in deals brokered by BTIG Hong Kong Ltd., Managing Director Christian Kielland said by e-mail. The trust, which holds assets from Li Ka-shing’s Hutchison Whampoa Ltd. (13), priced units in its IPO at $1.01.

Asian equities have tumbled this week, sending the MSCI Asia Pacific Index toward its biggest weekly decline since May, because of concerns that electricity shortages and radiation leaks from a nuclear-power plant crippled by the quake may disrupt production in Japan. HPH Trust begins trading on the Singapore Exchange at 2 p.m. today.

The trust, which owns terminals in Hong Kong and neighboring Shenzhen, sold about 5.4 billion units in the IPO. The price range was initially set at 91 cents to $1.08 before being narrowed to 99 cents to $1.03, according to term sheets.

The trust’s terminals handled a record 21.2 million 20-foot containers last year, 17 percent more than in 2009. The trust has room to develop 12 more berths in Shenzhen’s deepwater Yantian port, with the first three expected to be completed by 2015, Ivor Chow, chief financial officer of the trust’s manager, said at a Singapore press briefing last week.

World’s Busiest
Hong Kong and Shenzhen, in China’s Pearl River Delta, form the world’s busiest container market, Hong Kong-based Hutchison Whampoa said in a Jan. 18 statement. Hutchison Whampoa, controlled by billionaire Li, will retain about 25 percent of the trust and manage it.

Hutchison Whampoa rose 0.2 percent to HK$85 at 11 a.m. in Hong Kong. It’s dropped 8.4 percent since March 10, the last day of trading before the temblor. The company, the world’s largest container-terminal operator, also invests in drugstores, real estate and mobile-phone services.

Laura Cheung, a Hutchison Whampoa spokeswoman, wasn’t immediately available to comment. DBS Group Holdings Ltd. (DBS), Deutsche Bank AG (DBK) and Goldman Sachs Group Inc. (GS) managed the trust’s sale.

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

To contact the reporter on this story: Kyunghee Park in Singapore at kpark3@bloomberg.net

To contact the editor responsible for this story: Neil Denslow at ndenslow@bloomberg.net

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