Swire aims to raise $2.5b in share sale

Hong Kong :  Swire Properties said yesterday that it expects an upcoming share sale to raise around US$2.5 billion (Dh9.2 billion), freeing up cash to fund its expansion in Hong Kong and mainland China.

Swire said it will offer 910 million shares at a price between HK$20.75 and HK$22.90 ($2.67 and $2.94 US).

The initial public offering will start today and a final price will be determined on May 7, the company said, adding that it could choose to exercise an over-allotment option to sell an additional 136.5 million shares.

Shares in Swire Properties — one of Hong Kong's biggest commercial landlords — are expected to start trading on Hong Kong's bourse on May 14, the company said.

"Swire Properties is capital constrained," Chief Executive Martin Cubbon told a news conference in Hong Kong yesterday.

"This IPO is all about providing funds for expansion in the future."

The company is a unit of conglomerate Swire Pacific, which is Hong Kong airline Cathay Pacific's largest shareholder and a subsidiary of British family-run John Swire & Sons.

More than HK$2 billion in IPO proceeds will be earmarked to fund existing projects in Hong Kong, mainland China and the United Kingdom, Swire Properties said.