Hutchison Port Holdings Trust IPO

Hutchison Port Holdings Trust IPO: Debut at US$1.01 at 2pm. CS maintains UnderWeight and recommends selling into MSCI inclusion. Tip IPO to be included by MSCI to its indices. Assuming foreign inclusion factor of 0.65 and based on estimated free float of 62%, HPHT's MSCI weighting would be 3.1% and rank 10th in MSCI Spore…..

Based on GLP and CMA, which were both included by MSCI immediately upon listing, announcement could be made Fri evening. GLP jumped 11% on debut and CMA rose 8%. GLP peaked on the 10th trading day (+18% over the IPO price), 1 day before being effectively included in the MSCI index. CMA peaked on 14th day (+27%) of its debut, 2 days after being included, yet both GLP and CMA returned nearly all their outperformance within 100 days post their debut…..

Note that based on GLP and CMA’s historical share price performance, HPH Trust’s stock price could peak within two wks of debut. We however like to highlight that Credit was left out in this mega IPO, which boasts a wide range of top global investment banks as Co-Lead managers and underwriters.

Note that based on GLP and CMA’s historical share price performance, HPH Trust’s
stock price could peak within two wks of debut. We however we like to highlight that Credit Suisse was left out in this mega IPO, which boasts a wide range of top global investment banks as Co-Lead managers and underwriters.