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1821 - ESR Cayman News Story

HK$20.05 0.5  2.6%

Last Trade - 9:08am

Sector
Financials
Size
Large Cap
Market Cap £6.04bn
Enterprise Value £7.57bn
Revenue £273.4m
Position in Universe 221st / 5992

UPDATE 1-Warburg Pincus-backed ESR's revived HK IPO to raise $1.45 bln - term sheet

Mon 21st October, 2019 2:43am
(Adds details of deal, ESR declining to comment)
    By Julie  Zhu
    HONG KONG, Oct 21 (Reuters) - ESR Cayman Ltd  1821.HK ,
backed by private equity firm Warburg Pincus, relaunched its
Hong Kong IPO that aims to raise as much as $1.45 billion after
the logistics real estate developer shelved a float in June, a
term sheet seen by Reuters showed.
    The launch of what would be Hong Kong's second biggest
initial public offering (IPO) so far this year comes as
companies are forging ahead with listing plans in Asia's top
financial hub after a months-long freeze during frequently
violent anti-government protests.
    ESR, which manages a range of property-focused funds as well
as its own directly held property investments, started
book-building of the IPO on Monday. 
    It is selling about 653.7 million shares with a split of
42.9% primary shares and 57.1% secondary, totaling 21.5% of its
enlarged share capital, at an indicative range of HK$16.2 to
HK$17.4 ($2.07 to $2.22), the term sheet showed.
    Within that range, the firm could therefore raise $1.35
billion to $1.45 billion before any over-allocation option is
included. That would give the firm a market capitalisation of
$6.27 billion to $6.74 billion, according to the term sheet. 
    ESR declined to comment. 
    At least seven existing shareholders are selling shares in
the IPO, including Warburg Pincus, Goldman Sachs Investments
Holdings (Asia) Ltd and e-commerce firm JD.com Inc's  JD.O 
Jingdong Logistics Group Corp, the term sheet showed. 
    ESR has lined up $585 million from one cornerstone investor,
OMERS Administration Corporation, one of Canada's largest
pension funds, based on the mid-point of the price range,
according to the term sheet.
    The shares will be priced on Oct. 25 and trading is
scheduled to start on Nov. 1.
    Budweiser Brewing Company APAC Ltd  1876.HK  raised about $5
billion last month in Hong Kong, in the city's biggest and the
world's second-largest IPO so far this year.
($1 = 7.8413 Hong Kong dollars)

 (Reporting by Julie Zhu; Editing by Muralikumar Anantharaman)
 ((julie.zhu1@thomsonreuters.com; +852 2843 6519; Reuters
Messaging: julie.zhu1.thomsonreuters.com@reuters.net))
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