Tag Archive | "Hutchison Ports"

HPH Trust posed for rise

Hutchison Port Trust (NS8U.SG) has been trading below it IPO debut price of US$1.01 ever since it was first listed in the Singapore Exchange Main board. Being listed almost immediately after the Japan Earthquake gave the counter a bad start.A weak US dollar coupled with general weakness in global equities has seen the stock hovering in the range of US$0.55- US$0.85.

On 7 March 2013, Hutchison Port Holdings Trust (HPH Trust) announced its acquisition of Asia Container Terminals (ACT) for a cash consideration of approx. HKD3.2bil. HPH Trust also procured an amount of HKD750mil to fund the full repayment of ACT’s existing indebtedness. ACT owns and operates Container Terminal 8 West (CT8W), which has two berths located in Kwai Chung, Hong Kong and has a concession lease that runs till 30 June 2047.

Supported by the strategic positives of massive operational scale, long contiguous berths as well as the relatively resilient nature of its throughput mix, HPH Trust remains favourably positioned to ride on the burgeoning intra‐ Asia and transhipment trade in the coming years. Therefore, I continue to believe that the current degree of undervaluation in HPH Trust remains unjustified.

There have also been rumours circulating that HPH Trust is likely to replace Fraser & Neave(F & N) in the STI index. F & N has been taken over by Thai Beverage and it was announced after the STI review that it will take the place of IHH holdings with effect from 18 March. At the moment HPH is one of the 5 counters on the STI reserve list and the largest by market capitalization. Should the rumors be proven true, it will mean very likely that HPH holdings will experience a large buying demand in its share as many mutual funds tracking the Straits Times Index will be buying up the counter. We are already seeing increases in the price of the counter and the highest transaction turnover for HPH for the past 12 months where 89.6 million shares of HPH trust changing hands. We do not know if it is mutual funds manager stocking up the shares before the price goes up further or a clearer signal that it will be included in the STI come next review.

The future of HPH trust certainly looks bright and I would recommend it as part of your dividend basket of shares.

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HPH Trust (NS8U.SG) closes at US$0.985 on 25th march 2011

HPH Trust (NS8U.SG) closes at US$0.985 on 25th march 2011

HPH trust (NS8U.SG) remains the most traded counter on the singapore stock exchange since its debut on 18th March Friday afternoon.

A dismal IPO showing due largely to the Japan earthquake dampened sentiments and saw the counter fall to a low of 0.905 on 22nd March. However a series of stablising trades from 18th to 25 march by the stablising manager, Deutsche Bank AG who bought a total of 188 million shares enabled the stock to recover much of the losses.

We expect the stablising actions to continue at least until the counter reaches its IPO pricing. This in addtion to a report by Credit Suisse which says HPH Trust could peak within two weeks of its debut due to its inclusion in MSCI is gving a very strong BUY signal for HPH Trust(NS8U.SG)

Long term outlook on the stock is also very positive as according to Goel of Drewry.

“Based on its business trust structure and mature ports, being able to actually list and raise proceeds in the billions is already considered a success,” says Goel, who believes the trust could have fared much worse. “The weakness we are seeing is true of the entire equities market in general. HPH Trust is a fundamentally strong yield play with a reputable name and should stabilise over the next few weeks once the volatility subsides.”

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Credit Suisse says HPH Trust (NS8U.SG) could peak within two weeks of its debut this afternoon

Credit Suisse says HPH Trust (NS8U.SG) could peak within two weeks of its debut this afternoon

Credit Suisse says HPH Trust (NS8U.SG) could peak within two weeks of its debut this afternoon, based on GLP (MC0.SG) and CapitaMalls Asia’s (JS8.SG) historical share price performance.

The house says on its IPO price of US$1.01 ($1.29), HPH Trust would have a market cap of $11 billion, the 18th-largest stock in Singapore, and is expected to be included by MSCI to its indices, with an announcement possibly by this evening.

The house notes GLP and CMA were both included by MSCI immediately upon listing; GLP jumped 11% on its debut while CMA rose 8%.

“GLP peaked on the 10th trading day (+18% over the IPO price), one day before being effectively included in the MSCI index. CMA peaked on the 14th day (+27%) over its debut, two days after being included in the index. Interestingly, both GLP and CMA returned nearly all their outperformance within 100 days post their debut.”

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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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HPH Trust sets IPO at US$1.01 per unit

HPH Trust sets IPO at US$1.01 per unit

SINGAPORE: Hutchison Port Holdings Trust (HPH Trust) said it has set the price for its Singapore’s initial public offering at US$1.01 per unit, below the top end of its indicative price range of US$0.91 and US$1.08.

The trust also said that it has allowed the joint book runners, led by Deutsche Bank, to exercise an over-allotment option, which gives them the right to subscribe as much as 15 per cent of the public offer.

If the over-allotment is exercised in full, parent Hutchison Whampoa, which is controlled by Hong Kong billionaire Li Ka-shing, would raise over US$6 billion from the listing, making it the largest IPO in both Singapore and Southeast Asia, exceeding last year’s US$3 billion offering by Global Logistic Properties and the US$4.1 billion Malaysian IPO by Petronas Chemicals.

The money raised by HPH Trust will be used to pay for the port assets that it is buying from Hutchison Port Holdings, which is 80 per cent-owned by Hutchison Whampoa and 20 per cent by Singapore’s PSA International, a wholly owned unit of Temasek Holdings.

– CNA/cc

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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 Bloomberg.com

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Hutchison ports unit set for $7.41b IPO, SE Asia’s biggest

Hutchison ports unit set for $7.41b IPO, SE Asia’s biggest

Hong Kong tycoon Li Ka-shing’s ports unit is looking to raise as much as $5.8 billion in its Singapore IPO, seeking to cash in on a recovery in global trade and provide investors with access to China’s booming infrastructure business.

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 (CKI) (1038.HK) unit.

The deal has attracted big names including Singapore state investor Temasek Holdings (TEM.UL), U.S. hedge fund manager Paulson & Co and Cathay Life Insurance, who will be putting in US$1.6 billion as Co 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, the prospectus showed.

It would be the first publicly traded business trust backed by port assets,according to the prospectus, and would exceed Malaysia’s Petronas Chemicals’ (PCGB.KL) 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 (0013.HK), the world’s largest container terminal operator, is spinning off Hutchison Port Holdings Trust in a separate listing in Singapore to take advantage of regulations that are favourable for trust-like companies.

With operations in 53 countries and approximately 220,000 employees worldwide, Hutchison has five core businesses — ports and related services; property and hotels; retail; energy, infrastructure, investments and others; and telecommunications.
The company chose Singapore over Hong Kong because the city-state has been an attractive destination for infrastructure and real estate trusts, bankers said.

“It will be interesting to see how Hutch puts the money to work – does it repay debt, does it acquire utility businesses at reasonable valuations or does it venture into something as risky and expensive as 3G?,” said Jacob Samuel, credit analyst at Nomura.

The yield from the offering of between 5.5% to 6.5% to unit holders, is lower compared to an average of around 7% offered by Singapore-listed business and property trusts.

“It is not attractive at this price range,” said William Lo, an analyst from Ample Capital. “A discount of 20% of the current price range will be seen more attractive.”

Hutchison Port Holdings Trust reported a net profit of US$655 million in 2010, from a revenue of US$1.49 billion. Similar trusts have been lapped up by investors who seek a higher dividend yield and want to diversify from bonds.

Singapore is home to property trusts owned by Southeast Asia’s biggest property firm CapitaLand (CATL.SI) as well as shipping, infrastructure and logistics’ trusts from China to Australia.

Based on the maximum indicative price, the market cap of the company will be $9.4 billion after the listing, which is likely to take place on March 18, according to a source with knowledge of the deal.

Hutchison Whampoa and Singapore state-owned PSA International, which owns 20% of the Hong Kong firm, will together own 32% of the company after the listing if overallotment is exercised.

Paulson will invest US$350 million in the IPO, whereas a Temasek unit will put in US$100 million.

DBS (DBSM.SI), Deutsche Bank (DBKGn.DE) and Goldman Sachs (GS.N) are joint bookrunners and issue managers.

JPMorgan (JPM.N), UBS (UBSN.VX), Barclays (BARC.L), Morgan Stanley (MS.N) are among co-lead managers.

Hutchison ports unit set for $7.41b IPO, SE Asia’s biggest [via]

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