Hutchison Port Holdings, the world's largest port operator, said it priced an initial public offering for its South China region's port operations at a value of $5.5 billion.
The IPO price of $1.01 per share values the company near the middle of the $4.9 billion to $5.8 billion target range identified when Hutchison announced plans to spin off its port unit. An over-allotment option, if exercised in full, could raise the IPO value as high as $6.3 billion.
The new business unit, Hutchison Port Holdings Trust, will control Hutchison's deepwater container terminals in Guangdong province in mainland China, Hong Kong and Macau. The initial principal assets of HPH Trust also include the group's interests in the operators and owners of deep-water container ports in Hong Kong and Yantian.
Hutchison Port Holdings, the Hutchison group subsidiary that is the world's largest container port operation in throughput, will retain a 25 percent share in the spun-off company.
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