Yale University, home to the second-biggest North American college endowment fund, is investing $50 million in the first-time Hong Kong share sale of China Railway Construction Corp, said sources.
Yale is among nine so-called cornerstone investors that will buy a combined $450 million worth of shares, the sources said, declining to be identified because the information has yet to be publicly announced.
China Railway Construction plans to raise as much as $5.4 billion. It is the world's largest share sale this year, according to Bloomberg data.
The stock offering is taking place amid the slowest start to Hong Kong's share sale market since 1999 and as more than 80 companies delayed or scrapped stock offerings worldwide after markets fell on concerns of a global economic slowdown.
"Last year was characterized by a lot of liquidity chasing all the IPOs," said Winson Fong, who manages about $600 million at SG Asset Management in Hong Kong. "This year we'll be more selective. This is one of the bigger ones in the beginning of the year. There will still be lots of demand for this IPO."
The cornerstone investors, which also include two Singapore government-backed funds and Hong Kong billionaires, are guaranteed stock in the share sale in exchange for a commitment to not sell the shares for 12 months, the people said.
It is a rare cornerstone investment for both Yale and Temasek Holdings Pte, Singapore's sovereign wealth fund, which is also buying $50 million worth of shares, they added.
China Railway Construction is scheduled to start trading in Shanghai on March 10, it said in a document on Feb 15. It will start trading in Hong Kong on March 13.
（英语点津 Celene 编辑）
About the broadcaster:
Brendan joined The China Daily in 2007 as a language polisher in the Language Tips Department, where he writes a regular column for Chinese English Language learners, reads audio news for listeners and anchors the weekly video news in addition to assisting with on location stories. Elsewhere he writes Op’Ed pieces with a China focus that feature in the Daily’s Website opinion section.
He received his B.A. and Post Grad Dip from Curtin University in 1997 and his Masters in Community Development and Management from Charles Darwin University in 2003. He has taught in Japan, England, Australia and most recently China. His articles have featured in the Bangkok Post, The Taipei Times, The Asia News Network and in-flight magazines.
