PCCW is taking in HK$9.3 billion in proceeds from its telecommunications assets spin-off - Hong Kong's first business trust initial public offering - after units were sold at the low end of its price range in a volatile market.
In a filing with the Hong Kong stock exchange yesterday, PCCW said the final price for the global offering of so-called share stapled units jointly issued by HKT Trust and operating firm HKT was pegged at HK$4.53 per unit.
Although at the bottom end of the previously announced range of HK$4.53 to HK$5.38, the offer price still allowed the business trust to achieve an estimated market capitalisation of HK$29.1 billion.
PCCW group managing director Alex Arena said that amount 'exceeds the minimum market capitalisation of HK$28.6 billion approved by PCCW shareholders'.
A higher market capitalisation of HK$30.46 billion could be reached if the over-allotment option, which would be granted by HKT Trust and HKT to the IPO's international underwriters, was exercised in full.
'Despite the very challenging macro-economic environment and financial markets during the roadshow, HKT has attracted a broad list of globally renowned institutional investors who appreciate the high quality, defensive nature of HKT,' Arena said.