CLP Seeks Up to $992 Million in Share Sale as Stocks Gain
CLP Holdings Ltd. (2), Hong Kong’s biggest electricity supplier, is seeking to raise as much as $992 million in a share sale as investor sentiment improves after the city’s benchmark index rose to a 16-month high.
The company is offering 120.3 million shares at HK$62.90 to HK$63.90 apiece, according to a term sheet obtained by Bloomberg News. The price range represents a discount of 4.9 percent to 6.4 percent to its closing share price yesterday.
CLP fell 0.3 percent to HK$67.20 in Hong Kong yesterday. The stock has risen 1.7 percent this year, compared with a 22 percent gain for the Hang Seng Index. The benchmark index climbed for a third day yesterday, extending its highest close since August 2011, on speculation the Federal Reserve will announce another round of quantitative easing at a meeting.
JPMorgan Chase & Co., UBS AG and Goldman Sachs Group Inc. are arranging the sale, the document shows.
Winifred Wong, a spokesman for CLP, declined to comment on the reasons for the share sale.
CLP plans to raise net charges for electricity in Hong Kong by 5.9 percent in 2013 because of higher fuel costs, the company said Dec. 11. It estimated 2012 capital spending at HK$7.88 billion, according to a separate filing to Hong Kong’s stock exchange.
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