Huflux Water Trust – BT

Hyflux trust sets IPO price range

A BUSINESS trust backed by Singapore water treatment firm Hyflux has set an indicative price range of $0.78 to $0.91 a unit for its Singapore listing, potentially raising $150.15 million, a source told Reuters yesterday.

Hyflux Water Trust, which is based on 13 water treatment plants in China, is selling 165 million units in its stockmarket listing, according to its prospectus. JPMorgan is handling the deal.

At the indicative price, the trust would offer a yield of 4.9 to 5.7 per cent, the source said.

China is thirsty for more clean water to feed its economic growth. For plant builders such as Hyflux, injecting the completed factories into a trust frees up capital for it to expand elsewhere. — Reuters