HONG KONG - China's top port builder, China Communications Construction, readying a US$1.8 to US$2 billion Hong Kong IPO, will sell up to US$240 million in shares to three investors, including China Life Group, ahead of its listing, sources familiar with the deal said on Friday.
The state-run company will earmark 10 to 12 per cent of its IPO for three investors, including China Life Group, New World Development chairman Cheng Yutung and Singapore's GIC Direct Investments, the sources said.
'Each of them will take US$80 million worth of shares,' one of the sources said.
Billionaires Li Ka-shing and Saudi Prince Alwaleed bin Talan, had hoped to be cornerstone investors, but neither was on the list, the sources said.
Alwaleed planned to buy shares from the institutional portion of the IPO to get a larger stake, one source said.
It was not clear how soon after the HK listing the domestic one would follow, but the domestic A-share offering should be in place at least six months after the company lists in Hong Kong, because of domestic rules, one of the sources said.
China Communications Construction, whose business includes infrastructure design and construction to dredging and port machinery manufacturing, is offering 3.5 billion H-shares, or 24.4 per cent of its enlarged share capital.
A formal marketing roadshow will start on Nov 28 and the retail portion of its Hong Kong offering will run from Dec 1 to Dec 6, with final pricing on Dec 9. A trading debut is set for Dec 15. -- REUTERS
