SYDNEY Aug 3 Australia's TRUenergy, a wholly
owned unit of Hong Kong-listed power utility CLP Holdings
, could delay its IPO and cut the size from the earlier
planned $3 billion if markets weaken, two sources with direct
knowledge of the matter said.
The initial public offering, slated to be Australia's
biggest in about two years, could be pushed back to the first
quarter of 2013 from the November date targeted earlier, the
sources said, adding the $3 billion sought to be raised from the
planned IPO was high under current market conditions.
The size could fall to between $2 billion and $2.5 billion,
one of the sources said. The sources declined to be named as the
deal is confidential.
A delay to 2013 would add to struggles of the Australian IPO
market, which hasn't seen a single offering worth more than $100
million so far in 2012. The last big domestic IPO was QR
National's $4.6 billion offering in late 2010.
"TRU is not in a hurry. It does not want to get into a
position where it launches and then markets force it to call it
off or delay it," one of the sources said.
A TRU spokesman in Melbourne could not be contacted
immediately and did not respond to voice messages left on his
Volatile markets have roiled new offerings globally. In Asia
equity capital market deals tumbled 30.4 percent to $77.9
billion in the first half, with IPO volumes down 62 percent,
Thomson Reuters data shows.
(Reporting by Narayanan Somasundaram; Editing by Muralikumar