Oversubscribed and reportedly closing a day ahead of schedule, Hutchison Port Holdings Trust’s $5.8bn initial public offering has proved renewed investor interest in the ports sector.
Reuters reports that traders close to institutional bankers said Hutchison's book generated institutional orders at a price range of $0.99- $1.03 a unit or slightly above the middle of the range, reflecting investors' demand to seek a higher yield.
According to the preliminary prospectus, the listing will also see an additional investment of $1.6bn (£993m) from investors including Singapore state investor Temasek Holdings, US hedge fund Paulson & Co and Cathay Life Insurance.
HPH is a subsidiary of Hutchison Whampoa, one of the flagship companies of the Hong Kong billionaire Li Ka-Shing, and one of the world’s biggest port operators, with stakes in 51 ports in 25 countries. The IPO covers the operator’s port assets in Hong Kong and southern China.