Hong Kong fibre operator HKBN’s IPO has raised US$750m pre-greenshoe after pricing at the top of its HK$8-9 marketing range, TelecomFinance understands.
People familiar with the deal said private equity firm CVC received the bulk of the proceeds after…
Hong Kong fibre operator HKBN’s IPO has raised US$750m pre-greenshoe after pricing at the top of its HK$8-9 marketing range, TelecomFinance understands.
People familiar with the deal said private equity firm CVC received the bulk of the proceeds after cutting its stake from 68.44% to 14.44% for US$626m.
Carlyle’s AlpInvest Partners reduced its stake from 7.87% to 1.66% for US$72m, while Singapore sovereign wealth fund GIC raised US$11.5m by reducing its share from 10.93% to 9.88%, according to the sources.
The companies declined to comment.
HKBN, which is Hong Kong’s largest residential fibre broadband services provider with a 53.7% market share, will not receive any proceeds from the sale of about of 645 million existing shares.
Underwriters are expected to offer an over allotment option that could boost the IPO’s size to just over US$860m.
As reported earlier, the Canada Pension Plan Investment Board is understood to have committed US$200m to be the deal’s cornerstone investor. It is now thought to have secured a 17.14% stake in HKBN to become its largest shareholder.
Other sellers understood to have participated in the IPO include HKBN’s CEO William Yeung, who netted US$7.4m by cutting his stake from 3.20% to 2.55%.
Rothschild is financial adviser for the operator’s IPO, with Goldman Sachs, JP Morgan and UBS acting as joint sponsors, joint global coordinators and joint bookrunners. CLSA and HSBC are joint bookrunners, and Bank of East Asia, BNP Paribas and Sun Hung Kai Financial are co-lead managers.
CVC originally bought 100% of HKBN in May 2012 for HK$5bn (US$628m) in one of Hong Kong’s largest leveraged buyouts. It sold a US$40m stake to GIC and a US$29m stake to AlpInvest just three months later.
