NEW World Infrastructure, the proposed listing vehicle of New World Development, is expected to increase the size of the new share offering to about US$250 million. The company previously said it planned to raise HK$1.5 billion for infrastructure investments through the new share offering, to start trading on the Hong Kong stock exchange on October 27.
A spokesman for Credit Lyonnais Securities (Asia), the lead-underwriter of the listing, said yesterday the offering size was likely to be US$250 million, plus a 15 per cent green shoe.
He expected NWI's share offering to reap a strong buying response in view of the positive outlook.
The brokerage firm previously predicted that NWI would achieve a compound growth of more than 40 per cent in earnings per share over the next four years.
A green shoe is a clause in an underwriting agreement saying that, in the event of exceptional public demand, the issuer will authorise extra shares for distribution by the syndicate.
The offering price has been set at a range of between $10.80 and $12.50 each, representing a 7.5 to 17.5 per cent discount to net asset value.
