China's State Grid buys biggest chunk of HK Electric's IPO-sources
HONG KONG Jan 11 (Reuters) - Government-owned State Grid Corp of China is coming in as the biggest cornerstone investor in Li Ka-shing-backed HK Electric Investments' up to $5.7 billion Hong Kong initial public offering (IPO), people familiar with the matter told Reuters.
Li's Power Assets Holdings Ltd is planning to list its Hong Kong electricity business, HK Electric Investments, as it seeks funds for overseas expansion. The IPO is set to be launched on Monday, they added.
Depending on the final IPO pricing, State Grid will end up owing more than 15 percent of HK Electric Investments after the IPO, set to be the biggest in Hong Kong since AIA Group Ltd's $20.5 billion deal in 2010.
Cornerstone investors, including State Grid, are committing around 35 percent, or about $2 billion based on the upper end of the IPO estimates, one person said. The final size of the fundraising will depend on the eventual IPO price, which will be determined through a book-build process.
Sources declined to be identified as the information is not public. Power Assets and State Grid cold not be reached for comments immediately. (Reporting by Denny Thomas and Michael Flaherty; Editing by Toby Chopra)
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