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1821 - ESR Cayman News Story

HK$20.15 -0.1  -0.3%

Last Trade - 13/08/20

Sector
Financials
Size
Large Cap
Market Cap £6.08bn
Enterprise Value £7.62bn
Revenue £274.2m
Position in Universe 221st / 5989

UPDATE 1-ESR Cayman increases size of Hong Kong IPO to $1.6 bln - sources

Fri 25th October, 2019 9:04am
(Adds details of size, background)
    By Scott Murdoch
    Oct 25 (Reuters) - Property investor ESR Cayman  1821.HK  is
exercising a 15% "upsize" option that will lift its Hong Kong
initial public offering (IPO) to $1.6 billion, according to two
sources, in what will be the city's second biggest float this
year. 
    Would-be investors have also been told the deal will be
priced at HK$16.80 a share - the mid point of the initial range
of between HK$16.20 to HK$17.40 - according to the sources who
could not be identified because the information has not yet been
made public. 
    Warburg Pincus-backed ESR is due to formally set the final
price of the deal on Friday night in New York.
    The extra shares in the "upsize" option come from existing
shareholders, meaning 63% of all the shares being sold are from
existing investors, and just 37% of the deal - or $600 million -
will be fresh money for the company.
    ESR could not be reached immediately for comment.
    The company this week relaunched its IPO following a failed
attempt in June that would have been worth up to $1.24 billion.
    At the time ESR, which manages a range of property-focused
funds and its own property investments, cited market conditions
as the reason for pulling the deal. 
    In the current offering, Canadian pension fund Ontario
Municipal Employees Retirement System (OMERS) has been named as
a cornerstone investor, with its $585 million investment worth
37% of the deal and 9% of the company's share capital following
the float. 
    A term sheet for the deal, seen by Reuters, said that the
company would use the majority of the funds raised to pay down
debt with the remainder spent on developing its existing
portfolio and increasing its co-investments. 

 (Reporting by Scott Murdoch; Editing by Muralikumar
Anantharaman)
 ((Scott.Murdoch@thomsonreuters.com;))
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