Hutchison Port Holdings Trust To Become Singapore Largest Initial Public Offering
Hutchison Port Holdings Trust (HPH Turst) is set to become Singapore’s largest initial public offering (IPO) as it looks to raise up to US$5.8b. Despite the prevailing jittery equities climate which has not been kind to recent IPOs, the Hutchison Whampoa spin-off trust is seeing overwhelmingly enthusiastic response. The assets behind the trust are considered the best of its parent, with the business on path to getting even larger. One of the core assets – the container terminals in Yantian – could almost double in size within the next 10 years, with another 12 berths potentially being added to the existing 16. Eight cornerstone investors – one of them backed by Temasek Holdings – have committed to a total subscription of US$1.6b while its parent will retain a 25%-stake post-listing. The IPO is of 3.6b to 3.9b units for a price range of US$0.91 to US$1.08 per unit. Based on the price range, the implied distribution per unit yield for the forecast period of 2011 is between 5.5% and 6.5%. For 2012, it is expected to increase to between 6.1% and 7.2%. The IPO closes at 10am on 14 Mar-11, with trading expected to start at 2pm on 18 Mar-11.
Hyflux Bags $890m PUB Water Project
Hyflux has been chosen to build and run Singapore’s second and largest desalination plant in Tuas. The project, which has a value of $890m, is scheduled to commence operations by 2013, through to 2038. The plant will add as much as 318.5k cubic metres of desalinated water per day to Singapore’s water supply, at a first-year price of $0.45 per cubic metre based on the warranted capacity. At completion, Hyflux’s total water desalination capacity would triple from the current 136.5k cubic metres to 455k cubic metres. Furthermore, Hyflux announced the construction of a combined cycle gas turbine power plant that will supply electricity to the desalination plant.
Perennial China Retail Trust Defers Listing
Perennial China Retail Trust (PCRT) announced that it was shelving plans for its proposed initial public offering. The business trust was expected to raise some $1.1b in gross proceeds, by issuing units at an indicative price of $1 each. PCRT had attracted a fair amount of interest, and managed to secure a cornerstone tranche amounting to 39.2% of the proposed size of the IPO, with CB Richard Ellis Global Real Estate Securities, Henderson Global Investors and Lion Global Investors on board. PCRT was to start off with an initial portfolio size of $1.1b with four properties in China, and there was to be another $3b worth of assets in the pipeline. Notably, the listing deferment was attributed to volatile global market conditions pressured by political crisis in the Middle East, reversal of funds from emerging to developed markets and co-occurred timing with the big offering of Hutchison Port Holdings Trust.
Teledata & Nine Other Compaines Added To SGX Watch-List
Teledata has been added to watch-list for failing to meet criteria for continued listing on the Mainboard. Under listing rules, any company with three straight years of pre-tax losses and whose average daily market value over the last 120 trading days dips below $40m, will be put on the watch-list. All of the newly-added firms posted a third consecutive year of losses for the results season that has just ended. However, Teledata stood out precariously as the only firm to fall below the $40m market cap threshold while the others remained above with market values of between $60.9m and $172.6m. Meanwhile, the nine other firms are United Fiber System, China Auto Corporation, Jiutian Chemical Group, Samko Timber, HLH Group, Fu Yu Corporation, Mirach Energy, HL Global Enterprises and Pacific Healthcare Holdings.
With a long-standing interest in economics and finance, Daxx is the Senior Research Editor of Shares Investment and oversees the offshore & marine and oil & gas sectors.
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