Tuesday, February 15, 2011

* IPO: Hutchison Whampoa *

IPO: Hutchison Whampoa has received conditional approval from SGX to list its southern China port assets but did not specify any listing date. The listed flagship of HK tycoon Li Ka-shing will retain control of the assets via a 25% stake in HPH Trust, a new company it plans to list in Spore in the form of a business trust.

HPH Trust will hold Hutchison's key deep-water port assets in HK, Shenzhen & Macau, which together represent the most active port region in the world by volume. The assets account for about half of the overall Ebit of Hutchison's highly profitable ports unit, Hutchison Port Holdings, in which PSA Int’l holds a 20% stake.

Hutchison aims to start pre-marketing the US$3-6b IPO in mid-Feb with a view to listing it around mid-Mar. HPH Trust's planned offering could top SingTel's $4b IPO in 1993 to become Spore's biggest-ever listing.

HPH Trust's distributable income is expected to total HK$3.26b for the mid-Mar to Dec 11 period & HK$4.46b for 2012. If the 2011 forecast is annualized, the total distributable income forecast for 2012 would represent 8.2% growth.

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