Cheung Kong Holdings, controlled by billionaire Li Ka-shing, plans to list another part of its conglomerate – this time in Hong Kong – just weeks after its IPO in Singapore raised $5.5 billion.
Hui Xian, the real estate investment arm of Ka-shing’s conglomerate, plans to raise around $1.5 billion by floating 40% of its stock in Hong Kong, say reports.
According to reports, shares of the property group will be sold in yuan, which is the first time this has happened outside mainland China. Ka-shing controls Hui Xian through his holding company Cheung Kong Holdings and subsidiary Hutchison Whampoa, which own 33.4% and 18% of the property group respectively.
Following the announcement, shares of the holding group Cheung Kong Holdings rose by 2.12% and was priced at $16.70 on 4 April.
This listing will add to the fortune of the majority owner of Hui Xian, billionaire Ka-shing, who benefited handsomely from a recent IPO of his deep-water ports Hutchison Port Holdings Trust in Singapore.
Cheung Kong Holdings was founded in the 1950s by Li Ka-shing and he is the majority shareholder of the group. With a personal fortune of $21.3 billion, the 82-year-old was ranked the 14th richest person in the world in 2010 and the richest in Hong Kong by Forbes.
Ka-shing serves as chairman of the group, while elder son Victor Li is deputy chairman and managing director. The group reported 2010 revenues of $4.22 billion, up from $3.12 billion in 2009.