Hong Kong’s CK Infrastructure sees thin trading in London debut

(Aug 19): CK Infrastructure Holdings Ltd (CKI) shares saw light trading on their London debut, in the first major listing under new rules meant to lure foreign issuers to the British capital.

By late Monday morning in London, 1,525 shares had changed hands at 564 pence apiece — less than £9,000 (US$11,667 or RM51,054) compared to CKI’s roughly US$18.5 billion market capitalisation. Last Friday, the firm’s primary Hong Kong listing had more than HK$182 million (US$23.4 million or RM102.34 million) traded.

CKI did not place any shares with investors before listing in London. HSBC Holdings plc worked on the listing, and has been appointed to act as its corporate broker, according to an earlier statement.

CKI and HSBC did not immediately respond to requests for comment. London Stock Exchange Group plc declined to comment. 

Backed by Hong Kong tycoon Victor Li, CKI is the first company to gain admission to the London exchange under new rules introduced by the Financial Conduct Authority. The move, to attract more companies to London amid a sharp drop in initial public offerings (IPOs), allows issuers that are not incorporated in the UK and have a recognised overseas listing to seek a second in the city in a bespoke category.

In an earlier statement, CKI said that a London listing would “benefit its geographically diverse shareholder base” and “provide a greater market for trading” of its shares. The UK is its largest market, accounting for about 36% of its net profit in 2023.

London, once Europe’s most popular venue for IPOs, has been battling with a dearth of IPOs in the last couple of years, as well as a string of high-profile defections from locally listed companies to New York, including construction materials group CRH plc and Flutter Entertainment plc.

But others may follow CKI in seeking a London listing. Vivendi SE’s Canal+ and Athens-listed group Metlen Energy and Metals SA are said to be exploring a London listing.