HK Electric raises $3.1 billion from IPO

Offering by Li Ka-shing's trust priced at low end of guidance after investors showed lukewarm appetite to the assets during bookbuilding.
Li Ka-shing
Li Ka-shing

Hong Kong tycoon Li Ka-shing’s Hong Kong Electric Investments has raised HK$24.1 billion $3.1 billion from its IPO, after pricing the deal at the low end of guidance.

HK Electric, a trust spun-off from Hong Kong-listed Power Assets Holdings, priced the deal at HK$5.45, the low end of the guidance range of HK$5.45-$6.30, representing a 2014 yield of 7.24%.

The price of the offering mirrors investor expectation as they showed lukewarm appetite to the assets during bookbuilding. The comparable HKT Trust, an infrastructure business trust listed in Hong Kong, is currently trading in the secondary market at a yield of 5.6%.

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