Hyflux gets a boost, upsizes CPS offering to S$400mln

The company's management has allocated S$200m to the public tranche as a result to the "overwhelming response" for the company's recent 6% CPS.

Positive feedback from investors drove Hyflux to double the offering price from S$200mln to S$400mln.

Of the fund, S$10mln has been allocated for the management and staff under the reserved portion and S$190m for the placement tranche.

More than 70% was allocated to private banks, while the rest went to asset managers and banks.

The CPS has also done well on its debut on April 26, closing up 3.0% at S$103.02, which translates to an effective dividend yield of 5.8%.

"We view the strong response from the investment community (S$1.4b for the placement tranche) as well as the public (S$1.0b) as a good endorsement of the group and its business model," OCBC Investment Research said.

The bank said the "upsized" offering is a "big boost" to Hyflux's balance sheet, and estimates the company to receive as much as S$396mln of net proceeds.

80% of the proceeds are seen to fund Hyflux's water and infrastracture projects, while the remaining 20% will be allocated as its general working capital.