HKBN tests IPO market with dividend play

CVC could almost double the return on investment in the Hong Kong broadband operator with the flotation, which will test investor appetite for yield plays.

HKBN launches roadshows for Hong Kong's first big initial public offering of the year on Tuesday, hoping to capitalise on clear equity markets and dovish comments by the US Federal Reserve, which suggest yield plays still have room to run.  

Led by CVC Capital, the private equity owners of Hong Kong's second-largest broadband operator also look set to almost double the return on their 2012 investment as they reduce their combined interest in the group from 90.1% to 26% pre greenshoe. 

The base deal comprises 645 million shares priced at between HK$8 and HK$9 per share. Pre greenshoe this will net the...

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