Hong Kong business magnate Li Ka-Shing's utility trust to raise $5.7 billion in IPO
Hong Kong-based electric utility company Power Assets Holdings Ltd. is reportedly expecting to list its electricity business next month. The proposed deal will provide the group a cash injection of up to $5.7 billion for overseas takeovers.
According to a report by Reuters, Power Assets will spin off Hongkong Electric Company Ltd. into HK Electric Investments, a single-investment trust. Its listing is slated for January 29, based on a securities filing late Sunday.
As part of the spin off, Power Assets expects to receive at least HK$55.7 billion ($7.2 billion) by exiting from Hongkong Electric Company to the trust. The deal will enable Power Assets to pursue new acquisitions in the global power industry while maintaining a strong financial profile, the report said.
Reuters said in its report that the initial public offering of HK Electric Investments could raise up to $5.7 billion based on an expected market valuation of between HK$48 billion and HK$63.4 billion. Power Assets expects to own 30% to 49.9% of the trust, with the remainder sold in the market, Reuters stated.
Power Assets is owned by Hong Kong business magnate Li Ka-Shing. Li is Asia's richest man with a net worth of $31 billion as of March 2013, according to Forbes.