CHINAdaily – Hong Kong tycoon Li Ka-shing’s Prosperity real estate investment trust (REIT) will limit institutional investors to individual stakes of US$15 million because of strong demand, a marketsource said yesterday, ahead of an initial public offering (IPO) that aims to raise up to US$246 million.
Prosperity, scheduled to be Hong Kong’s second REIT after the government-sponsored Link REIT, had decided on the cap to ensure an orderly IPO, the source said.
The IPO had received strong interest from a wide range of investors, including long-only funds, hedge funds, and private banks, the source added.
Formed with seven office and industrial buildings sold by Li’s Cheung Kong (Holdings) Ltd and Hutchison Whampoa Ltd for HK$4 billion, Prosperity will sell units for between HK$2 and HK$2.16 each, implying a yield range of 5.31-5.73 per cent, sources close to the deal have said.
