HPH seeks $5.8 billion IPO
Hutchison Port Holdings, one of the largest global terminal operators, is seeking $5.8 billion in an initial public offering on the Singapore Stock Exchange, according to a Reuters report Monday.
It would be the biggest IPO ever in Southeast Asia and the spun-off unit would rely on 'cornerstone investors' to provide up to $1.6 billion in financing, with $4.2 billion to be sold in shares, according to a preliminary prospectus. American Shipper reported on the IPO in mid-January.
Among HPH's cornerstone existing investors are Temasek Holdings, the state-owned Singapore sovereign wealth fund that owns HPH's rival PSA international. Temasek, which holds a roughly 20 percent stake in HPH, is projected to invest an additional $100 million.
Hutchison aims to set up a trust in which investors would receive a yield of 5.5 to 6.5 percent, the prospectus said. Singapore is increasingly becoming a destination for such maritime-related financial vehicles, with shipping trusts set up in recent years to fund the construction and lease of container vessels. The HPH Trust would be the first such entity to be solely backed by port assets, according to analysts.
“Given the size of HPH Trust, we expect the proposed IPO to attract significant investor interest,” Sean Quek, Singapore head of research at Credit Suisse, told Reuters. “In addition to the potential direct impact on trading volume, the IPO could also set the path for business trusts and port-related companies’ listing here.”