Li Ka-shing’s power generation and supply group will set up the first test of Hong Kong’s equity markets for 2014 when it begins marketing the spin-off of its local electricity distribution business to investors today.
The initial public offering could raise up to $5.7bn in fresh cash for Hong Kong-listed Power Assets Holdings. It is the biggest listing in the city since AIA’s $20.5bn sale in 2010 and the largest anywhere in Asia since Japan Airlines’ $8.5bn deal in September 2012, says Dealogic.
Power Assets, which is an affiliate of Mr Li’s broader Cheung Kong empire, will use the funds raised to pursue further global deals, according to company statements. It has distribution and generation businesses in the UK, Australia, China, New Zealand, Canada, Thailand and the Netherlands.