HONG KONG Jan 11 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
(Reporting by Denny Thomas and Michael Flaherty; Editing by