February 28, 2011 / 3:56 AM / 7 years ago

UPDATE 1-Hutchison unit sets price range for $5.8 bln Singapore IPO

* Price range of $0.91-$1.08 a unit - prospectus

* To sell up to 3.9 billion units, excluding cornerstones

* Temasek, Paulson, Cathay Life among cornerstones

* Cornerstones to invest $1.6 billion

By Saeed Azhar and Charmian Kok

SINGAPORE, Feb 28 (Reuters) - Hutchison Whampoa’s ports’ unit is looking to raise as much as $5.8 billion in its Singapore initial public offering, making it the biggest listing in Southeast Asia.

Hutchison Port Holdings has set an indicative price of $0.91 to $1.08 per unit for the IPO, aiming to raise $4.2 billion through the sale share. Cornerstone investors will be putting in an additional $1.6 billion in the deal, according to its preliminary prospectus.

Based on the maximum indicative price, the market cap of the company will be $9.4 billion after the listing, which is likely to be within a few weeks.

Singapore state investor Temasek Holdings , U.S. hedge fund manager Paulson & Co and Cathay Life Insurance are among the cornerstone investors.

The listing by Hutchison, a ports-to-telecom conglomerate owned by Hong Kong tycoon Li Ka-shing, is the first publicly traded business trust backed by port assets, according to its prospectus.

The company chose Singapore over Hong Kong because the city-state has been an attractive destination for infrastructure and real estate trusts, bankers said.

The units will offer a yield of between 5.5 percent to 6.5 percent to unit holders, according to the prospectus.

Paulson will invest $350 million in the IPO, whereas a Temasek unit will put in $100 million.

“Given the size of HPH Trust, we expect the proposed IPO to attract significant investor interest,” said Sean Quek, Singapore head of research at Credit Suisse.

“In addition to the potential direct impact on trading volume, the IPO could also set the path for business trusts and port-related companies’ listing here.”

DBS , Deutsche Bank , and Goldman Sachs are joint bookrunners and issue managers.

JPMorgan , UBS , Barclays , Morgan Stanley are among co-lead managers. (Additional reporting by Harry Suhartono; Editing by Raju Gopalakrishnan)

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