Hutchison Whampoa Ltd, controlled by billionaire Li Ka-shing, is seeking $5.83 billion from the sale of Chinese port assets in what may be Singapore's biggest initial public offering (IPO), Bloomberg reported Monday.
The world's largest operator of container terminals is offering about 5.4 billion units in a trust at a price of 91 cents to $1.08 each, according to a term sheet. Hong Kong-based Hutchison announced plans for the sale last month, the report said.
Cornerstone investors led by Capital Research & Management Co and Paulson & Co will invest $1.62 billion in the IPO, said the report citing Hutchison's Monday statement. The trust will have a total market value of as much as $9.4 billion, according to the statement.
The trust will own assets including container terminals in Hong Kong and neighboring Guangdong province. Hutchison will manage the trust and retain a 25 percent stake, according to a Jan 18 statement.
