CKI Lists in London to Expand Investor Base

CK Infrastructure Holdings (CKI), part of the business empire of Hong Kong billionaire Li Ka-shing, has officially debuted on the London Stock Exchange with a secondary listing that did not involve raising new funds. This marks CKI as the first foreign company to utilize the U.K.'s recent overhaul of its listing rules, aimed at revitalizing its capital markets and enhancing competitiveness against U.S. exchanges. The reforms, effective since late July, introduce a new category for non-U.K. incorporated companies with primary listings abroad. Victor Li, chairman of CK Hutchison, the parent company of CKI, stated during an analysts meeting that there are no plans for other CK Group companies to pursue similar secondary listings in the U.K. CKI emphasized that the secondary listing would enhance its geographically diverse shareholder base and provide a broader market for trading its shares. The company had previously indicated in July its interest in a secondary listing without fundraising. In its financial performance, CKI reported a 1.7% increase in net profit to HK$4.3 billion ($553 million) for the first half of 2024, despite a 2.3% decline in revenue to HK$19.1 billion. The U.K. market contributed nearly half of its turnover, with significant operations in energy and water utilities across various regions, including Australia and Canada. With over HK$9 billion in cash reserves, CKI is actively pursuing acquisitions, recently agreeing to purchase a U.K. wind farm portfolio for £350 million ($450 million) and acquiring UU Solar for £90.8 million. These moves reflect CKI's strategy to capitalize on market opportunities amid rising inflation and interest rates.