123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Business >> View Article

Abney Associates Advise Clients On Power Assets Potential Spinoff Ipo

By Author: Rick Abney
Total Articles: 25

Speculation is high that Asia’s richest man Li Ka-Shing’s flag ship company Power Asset Holdings Ltd. is seeking to divest itself of its Hong Kong Electric operation. The power producer has been since 1890, one of the two largest electricity providers servicing Hong Kong and has a customer base of 568’000 users. The deal could potentially raise $5 billion from the sale of 70% holding stake of the company.

Power Asset Holdings, which is expected to retain a 30% stake in its electricity provider spinoff, has already sought approval from the Hong Kong stock exchange and now only has to seek permission from its shareholders and listing committee before it can proceed further. Two joint sponsors for the deal are already on board represented by HSBC Holdings Plc. and Goldman Sachs Group Inc.

“This could be one of the most stable IPO offerings to emerge in a very long time, the company has a 123 year history of solid business performance generating profits per year at 10% generated by what is being sought in the flotation, the company’s assets alone contribute another 10%. Hong Kong is dependent on the supply and service this company provides and with a continual consumption this leads to an easy investment conclusion,” explained James Carter, Senior Vice President of Mergers and Acquisitions at Abney Associates.

Hong Kong Electric reported profits for last year of HK$4.5 billion and is currently holding assets of HK$5.6 billion making its initial public offering valuation of HK38.75 billion, a remarkably low figure in comparison with recent IPO listings of similar sized companies. Proceeds from the sale of Hong Kong Electric are believed to be earmarked for use by its current parent company in further expansion through acquisitions primarily within Europe.

“This is definitely an IPO that is generating great interest, mostly because it is of far more substance than style, a lot of investors are pleased to see such an offering come to market. The company’s track record speaks volumes with current earnings and projected future earnings stable and performing well, and when viewed in comparison with its estimated flotation value this leads to great potential on return of investment. Hong Kong Electric Company will continue to be of interest to potential investors and we will also be closely monitoring the progress of Power Asset Holdings,” concluded James Carter, Senior Vice President of Mergers and Acquisitions at Abney Associates.

Abney Associates are a Hong Kong based company that provides a range of financial services to individual clients, portfolio companies, corporate investors and entrepreneurs who wish to take unbiased financial advice.

Abney Associates are primarily a team of financial specialists who pride themselves on having a high level of expertise and vast experience for diligently monitoring any positive or negative developments to companies currently listed on exchanges globally, especially those that may affect client investment interests. This is done in order to ensure the financial advice given is factually correct and delivered in an effective way.

Total Views: 58Word Count: 496See All articles From Author

Business Articles

1. What Kind Of Business Web Hosting Do You Need?
Author: Ozzietel

2. Live Chat Agent Training Solutions For Your Company
Author: Brian Miller

3. The Importance Of Live Chat Conversation Data
Author: Brian Miller

4. Live Chat Can Increase Sales With The Help Of Ai
Author: Brian Miller

5. What To Expect From A Machine Learning Engineer In Venice, Ca
Author: Brian Miller

6. Is It Time To Benefit From Live Chat Agent Training Solutions?
Author: Brian Miller

7. Top Reasons To Invest In Enterprise Artificial Intelligence Solutions
Author: Brian Miller

8. Live Chat Can Increase Sales – How?
Author: Brian Miller

9. Advantages Offered By The Best Live Chat Agent Training Solutions
Author: Brian Miller

10. Buy Aromatherapy Products Online
Author: romyfernandis12

11. What Else Can I Do To Make My Deck Last Longer?
Author: Blue Star Carpentry has been specializing in custom decks for over a decade. When you sit outside wi

12. Colour Business Cards To Make The Business Elegant
Author: Vikram Kumar

13. Don’t Go Cheap On Marketing Materials, Hire The Best Professional Folder Printing Services
Author: Vikram Kumar

14. Represent Your Company With Style By Handing Silk Laminated Business Cards
Author: Vikram Kumar

15. Opt For Business Card Printing Using Advanced Offset Technology
Author: Vikram Kumar

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: