HKBN set to raise $748m from IPO

Hong Kong Broadband Network (HKBN) has priced its IPO at the top end of its marketed range, paving the way to raise around HK$5.8 billion ($748 million).

The IPO values HKT at $9 billion ($1.16 billion), Finance Asia reported. Strong demand for the offer will allow existing shareholders including CVC and GIC to sell nearly 645 million shares.

Sources told the publication that the top 20 investors accounted for around 70% of offers for shares. The Canada Pension Plan Investment Board had already agreed to serve as the cornerstone investor with a $200 million commitment.

The offer will see former majority owner CVC's stake drop to around 14.4%. Some large investors in the US and UK reportedly participated in the IPO, a rarity for Hong Kong floats. Institutional investors made up 90% of the offer.

HKBN has around a 34% share of Hong Kong's broadband market. The company is forecasting growth of between 10% and 15% annually, making it an attractive target for potential investors.