New World Development Delays Roadshow for Around US$1 Billion Hotel Trust IPO -Sources

   By Prudence Ho 
 

HONG KONG--Billionaire Cheng Yu-tung's New World Development Co. (0017.HK) has delayed taking orders for a planned hotel trust listing aimed at raising up to US$1 billion due to ongoing weakness in stock markets, people with knowledge of the deal said Friday.

The company, which declined to comment, will continue to monitor market conditions and wait for the right timing to launch the hotel trust offering, one of the people said.

The hotel trust, which will have three hotel assets comprising the Grand Hyatt Hong Kong, Renaissance Harbour View Hotel and Hyatt Regency Hong Kong, Tsim Sha Tsui, was scheduled to start taking orders from institutional investors Monday, other people familiar with the situation said earlier.

New World's hotel trust will be structured as a stapled unit, in which ordinary and preferred shares of the company are bundled together so that investors get dividends from the cash flow of the hotels, the people said earlier. This structure is popular among investors seeking steady, long-term income.

HSBC Holdings PLC, Deutsche Bank AG, J.P. Morgan Chase & Co., BOC International Holdings Ltd. and Standard Chartered Securities (Hong Kong) Ltd. are handling the transaction.

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