bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

paywallTypes

createdDate

publishedDate

sponsorType

urlAlias

moreOnThisArticles

commentCount

authorLocations

authors

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

articleSpeeches

socialHeadline

headline

images

flag

firstTopic

glossary

flattenTypeIds

image

relatedLinks

relatedNewsletters

__typename

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

Hong Kong Broadband Network, the city's second-largest broadband service provider, launched its initial public offering on Tuesday, raising up to US$750 million.
Private equity firm CVC Capital Partners, which owns a 70.7 per cent stake in the company, HKBN's management and other investors will offer 645 million existing shares at an indicative range of HK$8 to HK$9 apiece with an expected yield of 5.4 per cent.
The company would not receive any proceeds from the share offer.
HKBN has already secured a US$200 million order from the Canada Pension Plan Investment Board, representing about 27 per cent of what will be the city's first major deal of the year.
The firm will price the shares on March 4 and trading will begin on March 12.
If the shares are priced at the top end of the indicative range, it will be the second-biggest listing in Asia-Pacific this year, after Thai telecommunications operator Jasmine International's flotation of its broadband internet business early this month, which raised US$1.13 billion.
The outlook of Hong Kong's listing market is expected to be tepid, given rocky trading conditions
Ben Kwong, KGI Asia director  
Regional stock markets have been quiet so far this year as the mainland markets remain shut due to the Lunar New Year holiday and investors are looking for direction from the US Federal Reserve.
The Fed would likely be more hawkish, compared to a somewhat dovish tone last month, said analysts at ABN Amro in a research note to clients, adding that they expected the US central bank to start raising interest rates in June.
KGI Asia director Ben Kwong Man-bun said a strong economic recovery in the US provided solid fundamentals for the Fed to raise rates in the second half of the year and the Hong Kong stock market should remain volatile due to a strong dollar.
"The outlook of Hong Kong's listing market is expected to be tepid, given rocky trading conditions," said Kwong. "Lower government bond yields are adding to the recent caution."
Hong Kong has seen only US$332 million raised from listings this year, the lowest level since 2012, compared with US$3.7 billion for the same period a year earlier, according to Dealogic.
CVC bought HKBN from Hong Kong Television Network in May 2012 for HK$4.9 billion, according to its listing documents.


Hong Kong Broadband Network launches initial public offering

Hong Kong Broadband Network is competing in a crowded market for internet service providers in Hong Kong. Photo: Edward Wong

Business

Companies

.css-sioo19{color:#c79a00;}New | Hong Kong Broadband Network launches initial public offering

New | Hong Kong Broadband Network launches initial public offering