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Hong Kong’s CK Infrastructure Holdings, controlled by the family of the territory’s richest man Li Ka-shing, is considering a secondary listing on London’s stock market as confidence grows in the UK as a place to trade.
It announced it was looking at a “potential second and additional listing” on an overseas stock exchange, such as London, in a filing to the Hong Kong stock exchange on Thursday.
The potential move is a “sign of confidence in the UK” and the right time for the company after Labour’s election victory that provides a new government with “greater political stability”, said a person close to the group.
The UK capital has struggled to lure companies to its stock market and compete with rival exchanges such as New York. The value of new listings in the UK last year fell to the lowest level in years at just over $1bn.
About 40 companies have delisted or are delisting from London’s stock exchange this year, according to data provider Dealogic.
However, there have been some signs of a revival for the UK market with China-founded online fast-fashion retail group Shein moving towards a blockbuster London listing, according to people familiar with the matter.
The HK$117bn ($15bn) infrastructure company said the listing under consideration would probably not involve fundraising.
It also follows this week’s announcement by the Financial Conduct Authority, the UK financial regulator, of the biggest overhaul of the country’s listing regime, which is part of a wider effort to attract companies to London.
CKI, part of the Hong Kong-based CK Hutchison conglomerate controlled by Li Ka-shing’s family and chaired by his elder son Victor Li, said it had not made “any definitive decision” yet on whether to proceed with the listing.
A secondary listing “could benefit the company’s geographically diverse shareholder base and assist in building the company’s profile”, CKI said in the filing. It could also “provide a greater market for trading”.
CKI’s investments of gas, water and electricity assets span the UK, Australia, Canada and mainland China.
It bought UK Power Networks for £5.5bn in 2010 and owns substantial stakes in Northumbrian Water and Northern Gas Networks.
Britain’s water suppliers have been under pressure over rising bills and a failure to tackle sewage problems.
In a draft decision, regulator Ofwat has capped the rise in average household bills for Northumbrian Water at 11 per cent, excluding inflation, between 2024/25 and 2029/30, rejecting the company’s request for a 14 per cent increase.