ESR seeks to raise US$1.45bn in Hong Kong IPO

ESR seeks to raise up to US$1.45bn in Hong Kong IPO

Asia Pacific-focused logistics property platform ESR is planning to raise as much as US$1.45 billion from its initial public offering(IPO) on the Hong Kong stock exchange in a second attempt.

In June, ESR had postponed its Hong Kong initial public offering(IPO) which planned to raise as much as $1.24 billion, citing unfavorable market conditions.

Warburg Pincus-backed ESR Cayman Limited today announced the details of its proposed listing on the Main Board of The Stock Exchange of Hong Kong Limited (“SEHK”).

Of the 653,680,000 Shares set for Global Offering, approximately 94.7% will be for International Placing and the remaining approximately 5.3% are for Hong Kong Public Offer. The indicative offer price range is between HK$16.20 and HK$17.40 per Offer Share. Assuming the Offer Size Adjustment Option and the Over-allotment Option are not exercised and the Offer Price is HK$16.80 per Offer Share (being the mid-point of the price range), the gross proceeds from the Global Offering are estimated to be approximately HK$10,981.8 million.

The Hong Kong Public Offer begins on October 22, 2019 (Tuesday) and ends at 12 noon on October 25, 2019 (Friday). The final Offer Price and allotment results will be announced on October 31, 2019 (Thursday). Dealing of Shares will commence on the Main Board of SEHK on November 1, 2019 (Friday) under the stock code 1821. Shares will be traded in board lots of 200 shares each.

Morgan Stanley Asia Limited, Deutsche Bank AG, Hong Kong Branch, Citigroup Global Markets Asia Limited, Credit Suisse (Hong Kong) Limited and Goldman Sachs (Asia) L.L.C are the Joint Global Coordinators of the proposed listing of ESR. Deutsche Securities Asia Limited and CLSA Capital Markets Limited are the Joint Sponsors of the proposed listing of ESR.

“Our asset light business model in a traditionally asset heavy sector, coupled with our best-in-class management team in each market and synergistic network of the blue-chip partners across the region, enables us to build a highly scalable business and achieve strong growth and returns. We are pleased that our cornerstone investor recognizes our unique and differentiated business model. With their support and our robust expansion plan, we hope to capitalize on the burgeoning market opportunities across APAC to further cement our leading position in the region,” said Jeffrey Shen and Stuart Gibson, co-founders and Co-CEOs of ESR in a statement.