AIH opened at $2.36 today and had reached $2.40 by midday AEDT, giving it a market capitalisation of close to $700 million. AIH is based around the pipeline and power station assets that Alinta bought from US-based Duke Energy for $1.69 billion. Alinta said it would receive $711 million from divesting the assets into AIH.

The shares were issued at $3.20 each on a partly paid basis, with investors initially paying $2.

Nearly 290 million shares were issued. Alinta closed the offer three days early due to a strong response.

Alinta will keep a 20% stake in the new company, which is forecast to pay annual yields of 6.75% in 2005, 7.88% in 2006 and 8.91% in 2007.

With the market liquid with cash, other massive utilities floats are expected.

Babcock & Brown has said it will spin off a wind-farm fund worth up to A$692 million.

Hong Kong giant Cheung Kong Infrastructure (CKI) is expected to team with Deutsche Bank to list a A$1.8 billion trust that will hold half of the company’s stakes in Victorian electricity distribution businesses Powercor and CitiPower, as well as half of its stake in South Australia’s ETSA Utilities.

Singapore Power, which also operates a Victorian electricity network, is expected to float its SP Ausnet business for more than A$1 billion.