Cube’s private InvIT to go public
Cube Highways’ private infrastructure investment trust is preparing to launch a Rs50bn (US$537.5m) public sale of shares, converting the InvIT from private to public.
Cube Highways Trust has filed preliminary documents for an initial public offering to raise Rs50bn, where existing shareholders will sell their units to new investors. The investment manager of the InvIT, Cube Highways Fund Advisors, submitted a draft initial public offer document this week to the Securities Exchange Board of India. The lead managers for the IPO are Kotak Mahindra Capital, HDFC Bank, HSBC Securities and Capital Markets and JM Financial.
The InvIT has also this week agreed a purchase from Cube Highways via an equity swap transaction four roads assets. The InvIT would acquire 100% of Baharampore Farakka Highway, Devanahalli Tollway, and Chenani Nashri Tunnelway and at least 95% of Western MP Infrastructure and Toll Roads.
Investors in Cube Highways Trust include I Squared Capital, Abu Dhabi Investment Authority, British Columbia Investment Management Corp and Mubadala Investment Company. The InvIT owns 27 road assets under tolling, hybrid annuity and annuity concessions, with Rs360.93bn of assets under management in total, including Rs178.84bn of debt and Rs191.81bn equity.
