Hong Kong’s CK Infrastructure Holdings is being controlled by the family that controls the richest man in Hong Kong, Li Ka-shing. The company has been considering a secondary listing at the London Stock Exchange as the UK’s reputation as a trading hub continues to grow.
In a filing made to the Hong Kong Stock Exchange on Thursday, it announced that it was considering a “potential secondary and additional listing” at an overseas stock market, such as London.
A person close to group said that the potential move was a “sign” of confidence in Britain and came at the perfect time after Labour’s victory, which provides the new government with greater political stability.
The UK capital has been struggling to attract companies to its stock exchange and compete with rival exchanges like New York. Last year, the value of new UK listings fell to its lowest level for years. It was just over $1bn.
According to Dealogic, data provider, about 40 companies delisted from the London Stock Exchange this year or are planning to delist.
According to sources familiar with the situation, the UK market has shown some signs of revival. The China-founded fast-fashion online retail group Shein is moving toward a massive London listing.
The HK$117bn (15bn dollars) infrastructure company has said that the listing it is considering will not likely involve any fundraising.
This announcement follows the Financial Conduct Authority’s largest overhaul to the listing regime in the UK, made this week. It is part of an effort to bring more companies to London.
CKI, a part of the Hong Kong-based CK Hutchison company controlled by Li Kashing’s family, and headed by his son Victor Li said that it has not yet made “any final decision” on whether or not to proceed with listing.
CKI stated in its filing that a secondary listing could benefit the geographically diverse shareholders of the company and help build the company’s image. It could “provide a larger market for trading”.
CKI’s investment in gas, water, and electricity assets spans the UK, Australia and Canada, as well as mainland China.
It purchased UK Power Networks in 2010 for £5.5bn and has substantial stakes both in Northumbrian Water Networks and Northern Gas Networks.
Water suppliers in Britain have come under increasing pressure due to rising bills and the failure to address sewage issues.
In a draft of a decision, the regulator Ofwat has set the average increase in household bills, excluding inflation between 2024/25 to 2029/30 at 11 percent, rejecting Northumbrian Water’s request for an increase of 14 percent.
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