Utility firm's initial public offering is contingent on it acquiring Hyflux, says CEO
UAE-based utility Utico plans to raise as much as S$500 million ($366 million) through a listing on the Singapore Exchange in the next two years, according to chief executive officer Richard Menezes.
“We are meeting SGX today for Utico’s listing and other matters,” Menezes told Bloomberg in Singapore on Thursday. The valuation of the company will be at least S$2 billion, he said.
Utico is one of the suitors for embattled water treatment firm Hyflux Ltd and is planning to acquire an 88% stake in the company. The company has received “substantial approvals” from creditors for the deal after several meetings, Menezes said.
The utility firm’s initial public offering is contingent on it acquiring Hyflux, but that condition could change over time, Menezes said. Utico also plans to relist Hyflux after restructuring by the end of 2019 or early next year, he said.
Hyflux is seeking to meet billions in liabilities after an expansion into the power-supply business went awry. The firm has been looking for a white knight investor after a deal with Indonesian consortium SM Investments fell through in April.
In May, a Singapore court extended a so-called debt moratorium that prevents creditors from taking action until August 2. Hyflux’s creditors may agree to the deal around that date, according to Menezes.