RUSAL to raise $2.2 billion in 1st Russian HK IPO

United Co RUSAL Ltd, the world's largest aluminum producer, raised HK$17.4 billion ($2.2 billion) in the first initial public offering by a Russian company in Hong Kong, said three people familiar with the sale.

The company, controlled by billionaire Oleg Deripaska, priced 1.61 billion new shares, or a 10.6 percent stake, at HK$10.80 each, said the people, who declined to be identified before a public announcement. The final pricing gives RUSAL a market value of $21 billion. RUSAL offered the shares at HK$9.10 to HK$12.50.

Deripaska, also chief executive officer, persuaded Hong Kong billionaire Li Ka-shing, Malaysia's Robert Kuok and New York hedge fund Paulson & Co Inc to invest.

Casino operators decline on mainland rates concerns

Wynn Macau Ltd, controlled by billionaire Stephen Wynn's casino operator, fell the most in almost three months in Hong Kong trading on speculation China will tighten policies to curb inflation.

Wynn Macau tumbled 5.7 percent to HK$9.60, the most since October 28. Billionaire Stanley Ho's SJM Holdings Ltd slid 2.2 percent after earlier falling the most in almost two months. The Hang Seng Index fell 0.65 percent, capping its worst week since November. The China Enterprises Index of top locally listed mainland stocks closed up 0.15 percent, at 11,975.65.

Mainland's Evergrande sells $750m of 5-yr bonds

Mainland's Evergrande Real Estate Group sold $750 million of five-year bonds at a 13 percent interest rate, the company said in a statement to the Hong Kong stock exchange on Friday.

The amount raised from the debt sale will be used to pay loans and fund existing and new projects, Evergrande said.

Evergrande's bond issue attracted $2.5 billion in total orders, a source close to the deal said. Of the total bonds sold, 65 percent went to investors in Asia, 20 percent to the United States and the balance to Europe, the source said.

HSI system interrupted, investigation in progress

Hang Seng Indexes Company Limited (HSIL)'s index system was interrupted Friday morning, according to a statement on Hong Kong Exchanges and Clearing Limited (HKEx)'s website. As a result, the dissemination of HSIL's indexes through HKEx's trading and information systems was suspended between approximately 10:00 am and 10:32 am. At approximately 10:33 am, HSIL was able to resume its calculation and dissemination of the indexes, said the statement.

All trading and information dissemination systems of HKEx continued to operate normally during the period HSIL's system was interrupted. HKEx's Exchange Participants and information vendors were advised of the interruption through HKEx's alert messages. HKEx notes that HSIL is looking into the cause of the system interruption.

Hong Kong dollar further weakens as stocks slump

The Hong Kong dollar weakened to 7.7725 against the US dollar on a further outflow of funds and as the local stock market fell amid fears that the mainland's strong economic growth will lead to a tightening of monetary policy. The strong data had fuelled concerns about inflationary pressures and asset bubbles. The local currency was quoted at 7.7723/25 versus the U.S. dollar at 0456 GMT, having earlier hit 7.7725, the highest since October 8, 2008. Local interbank rates moved in a narrow band in the absence of strong commercial demand and major IPOs.

China Daily/Agencies

(HK Edition 01/23/2010 page2)