SINGAPORE, Nov 23 (Reuters) - Singapore's Hyflux will raise S$129 million ($89 million) in the initial public offering of its water business trust, having priced the units at the bottom of an indicative price range.
Hyflux Water Trust, which is based on 13 water treatment plants in China, is selling 165 million units priced at S$0.78 in its stock market listing, according to its prospectus filed with the Monetary Authority of Singapore.
Shares in the new trust are scheduled to start trading Dec 3, at 2.00 p.m. (0600 GMT). Hyflux said in a statement that it expects a gain from the divestment of its plants, but the sum will only be known after the offer closes.
Hyflux Chief Executive Officer Olivia Lum said in the statement that the company will subscribe for new units representing 31.5 percent of the new trust to show its commitment to the business.
"Through the establishment of Hyflux Water Trust, Hyflux will be able to pursue our asset-light strategy, recycle our capital and continue to expand and develop our business," Lum added.
JPMorgan is handling the deal, which had an indicative price range of S$0.78 to S$0.91 per unit.
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