REIT IPO likely to raise 11 billion yuan

HONG KONG - Billionaire Li Ka-shing's property trust may raise as much as 11.2 billion yuan ($1.7 billion) in the first Chinese currency-denominated initial public offering outside the mainland.

Hui Xian Real Estate Investment Trust (REIT) is offering 2 billion units in a price range of 5.24 yuan to 5.58 yuan in Hong Kong, according to a statement released on Sunday. The forecast yield to investors is 4 percent to 4.26 percent annualized for the period from April 29 to June 30. The REIT may begin trading on April 29.

"A Li Ka-shing company will surely give confidence to investors as this is likely to be a dominant player in the market," said Tony Tong, head of market strategy at China Everbright Securities (HK) Ltd.