Hyflux Water Trust IPO
Water Deal of the Year
What is it?
The initial public offering on the Singapore Stock Exchange of Hyflux's Chinese investment vehicle, including interests in 13 water and wastewater projects. It was priced at S$0.78 per share, giving a market capitalization of S$234 million (US$161 million).
Who is responsible?
JPMorgan advised Hyflux on the transaction. US fund manager Fidelity took a 10% stake.
Why is it shortlisted?
- Hyflux Trust creates a new model for investment in the water sector which we can expect to be replicated elsewhere.
- The deal was a perfectly executed piece of innovative financial engineering pulled off in difficult market conditions.
- The trust will lead to accelerated investment in the Chinese water and wastewater sector, at a time when water availability and environmental pollution threaten to become the bottlenecks in the Chinese economy.