HK electricity trust to have at least $6.2bn market cap

Power Assets Holdings is expecting its Hong Kong electricity unit to have a market capitalisation of between HK$48 billion and HK$63.4 billion $6.2 billion to $8.2 billion following the spin-off and separate listing on the Hong Kong stock exchange, according to an announcement.

The business, which is controlled by Li Ka-shing and is one of only two electricity producers in Hong Kong, will be sold to a business trust-like structure known in Hong Kong as a fixed single investment trust. That trust, under the name of HK Electric Investments, will then be selling units to investors through an initial public offering.

The plan is to...