Hutchison Telecom Raises $899 Million
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Hutchison Telecommunications International Ltd., controlled by Hong Kong billionaire Li Ka-shing, raised $899 million from an initial public stock offering, significantly less than the maximum price it sought.
Hong Kong-based Hutchison Telecom sold American depositary receipts at $11.67 each, said Edward Naylor, a spokesman for Goldman Sachs Group, which managed the sale. The telecom company sold 90% of the 1.2 billion shares as ADRs.
Hutchison Telecom, which initially aimed to raise as much as $2 billion in the IPO, cut the price this week to help drum up buyers.
Li’s Hutchison Whampoa company will receive all the proceeds of the IPO.
Hutchison Telecom, a provider of cellphone service in Hong Kong, India and six other countries, faces increased competition that may slow revenue growth, said Jankees Ruizeveld at Rotterdam, Netherlands-based Robeco Group.
Although Li-backed IPOs in recent years have generated heavy oversubscription levels, many investors have lost money in the after-market -- a factor that damped sentiment for the new deal, several market participants said.
The stock will begin trading in New York under the symbol HTX on Thursday and the next day in Hong Kong.
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