Hutch may be forced to delay IPO

16 Jun 2004

Hutchison Whampoa’s planned listing of a group of its international telecoms businesses, Hutchison Telecommunications International Limited (HTIL), may be delayed because of objections by the Hong Kong Stock Exchange’s listing committee in relation to its plans to spin off one of the businesses it is listing – its Indian operation Hutchison Max Telecom – in less than the three years required by bourse guidelines. Hutchison would like to spin off the Indian business and list it in India sometime immediately after the HTIL listing, viewing it as one of the jewels in HTIL’s crown. If HTIL’s IPO is delayed much beyond 30 June it could run into other regulatory hurdles, potentially delaying it further. The timing of the listing is imperative for Hutchison Whampoa, which is looking to raise HKD2 billion from the IPO to offset losses from its 3G operations and home and overseas.