Weak demand drives down IPO price of PCCW trust

Telecom operator PCCW (0008.HKG) priced its trust IPO at the low end of its preliminary price rage based on weak market demand, raising US$1.2 billion on the Hong Kong Stock Exchange with a final share price of HK$4.53 (US$0.60), The Wall Street Journal reported. PCCW had hoped to raise as much as US$1.6 billion through the offering of HKT Trust & HKT (6823.HKG), which contains the telecom’s fixed-line and broadband assets. PCCW Chairman Richard Li bought a 12.5% stake, a significantly larger portion of the shares than the 2.75% to which he was entitled. Retail investors did not buy up all of the 10% set aside for them, according a source familiar with the situation, who did not say how much retail investors did purchase. A falling stock market hurt the offering, with the Hang Seng Index falling 10% this month.