ESR Cayman logo

1821 - ESR Cayman News Story

HK$19.52 0.1  0.5%

Last Trade - 07/08/20

Sector
Financials
Size
Large Cap
Market Cap £5.84bn
Enterprise Value £7.37bn
Revenue £271.8m
Position in Universe 222nd / 5983

UPDATE 1-Warburg-backed ESR shares rise over 7% in Hong Kong debut after $1.6 bln IPO

Fri 1st November, 2019 2:36am
* Shares rise to as much as HK$18.06 vs IPO price of
HK$16.80
    * ESR's failed IPO attempt in June would have raised $1.24
bln   

 (Adds IPO details, updates share price)
    By Scott Murdoch and Alun John
    HONG KONG, Nov 1 (Reuters) - Industrial property investor
ESR Cayman Ltd  1821.HK  shares climbed more than 7% on their
debut in Hong Kong on Friday, after raising $1.6 billion in a
re-launched IPO last week.
    The listing adds to recent strong debuts in the city by
companies including AB InBev's Asia-Pacific unit  1876.HK  and
Topsports International Holdings  6110.HK , despite months-long
and often violent anti-government protests.  urn:newsml:reuters.com:*:nL3N27G11R
    The Chinese-ruled city slid into recession for the first
time since the global financial crisis in the third quarter,
according to data released on Thursday, weighed by the protests
and a protracted U.S.-China trade war.  urn:newsml:reuters.com:*:nL3N27G314 
    Shares in ESR, backed by private-equity investor Warburg
Pincus LLC  WP.UL , rose as much as 7.5% to HK$18.06 ($2.30) in
opening deals, versus its initial public offering price of
HK$16.80 per share - mid-point of guided marketing range.
    The stock was trading at HK$17.72 at 0232 GMT, while the
broader Hong Kong market was trading 0.3% higher.
    ESR was formed in 2016 by the merger of the Japan-centric
Redwood Group and China-focused e-Shang, co-founded by Warburg
Pincus in 2011.   
    The company, which manages a range of property-focused funds
and its own property investments, relaunched its IPO last week
following a failed attempt in June that would have raised up to
$1.24 billion.  urn:newsml:reuters.com:*:nL4N27B02K
    In an update to the Hong Kong Stock Exchange on Thursday,
ESR said it would spend $404 million of the IPO proceeds to
repay debt, and $162 million to develop some existing logistic
properties and increase its current co-investments.
    As part of the IPO process, Canadian pension fund Ontario
Municipal Employees Retirement System became a cornerstone
investor, with its $585 million investment worth 36.4% of the
deal and 9% of the company's share capital following the float.
    ($1 = 7.8382 Hong Kong dollars)

 (Reporting by Scott Murdoch and Alun John Writing by Sumeet
Chatterjee; Editing by Himani Sarkar)
 ((sumeet.chatterjee@thomsonreuters.com; +852-2847 2094))
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