Hutchinson Port Holdings Trust – Application and allotment

Hutchinson Port Holdings Trust (HPH Trust) launched its IPO on 7 March 2011. The IPO is to issue 3.6 to 3.9 billion units with offering price ranging US$0.91 to US$1.08 per unit. Only 185 million units are for Singapore Public Offer.

At the end of application period on 14 March, 3.795 billion units will be issued at a price of US$1.01. Market capitalisation is US$5.5 billion. (Source: The Straits Times)

On the Singapore public offer, unitholders will pay S$1.294 per unit, lower than the upper range of the offer price of US$1.08 (S$1.383).

24,204 applicants were received for the public offer. All applicants are successful (no balloting at all). Small-time investors who applied just 1,000 units will be successful as well. They will become automatically unitholders of 1,000 units of this largest IPO in Singapore. Those who applied more than 1,000 units will be allocated a fraction of total units wanted. For example the bulk of the applicants (44% of applicants) who applied between 2,000 units to 9,000 units will only be allocated 2,000 units.

In terms of popularity of the Trust, indications of interest were received for 10.9 billion units for the international placement of 3.6 billion units. These indications of interest are 3 times the number of units available for the placement.

Trading of this Trust on the Singapore Exchange will commence on “ready” basis on 18 March at 2 pm.

Copyright © 2011, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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