This article was authored by Dylan Bushell-Embling, and was originally posted on telecomasia.net.
HKBN will today launch an initial public offering seeking to raise up to HK$5.8 billion ($747.8 million), and has reportedly already secured a commitment for $200 million worth of shares.
The Hong Kong operator and its shareholders will offer 645 million shares at an indicative price range of between HK$8 and HK$9 per share, Reuters reported, citing unnamed sources.
The Canada Pension Plan Investment Board will be a cornerstone investor in the IPO and has committed to purchase $200 million in shares, according to the report. Around 40 anchor investors will also participate.
Private equity firm CVC Capital Partners paid HK$4.87 billion to acquire HKBN from Hong Kong Television Network in 2012, and currently owns a 70.7% share in the operator’s holding company.
Minority shareholders GIC and AlpInvest Partners are also expected to provide shares for the IPO.
HKBN is Hong Kong’s second largest broadband operator after HKT. Earlier this month HKBN announced a deal to collaborate with the Ocean Park theme park on a free Wi-Fi network rollout.
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