August 3, 2012 / 4:35 AM / in 5 years

CLP's $3 bln TRUenergy Australia IPO may be delayed, cut-sources

SYDNEY, Aug 3 (Reuters) - 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 phone.

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 Anantharaman)

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