Hong Kong telco to raise £770m

PCCW’S telecom business spin-off, HKT Trust, is raising $1.2bn (£770m) in a Hong Kong IPO, pricing the deal at the bottom end of an indicative range as global market turmoil dented demand despite the high yield offered.

The dominant Hong Kong fixed-line operator will be able to use the money to expand the media business of what’s left of PCCW after the spinoff by expanding its TV operations.
PCCW’s shares, which have lost around 15 per cent so far this year, fell 3.65 per cent yesterday, lagging the Hang Seng Index’s 1.95 per cent fall.