Warburg Pincus-backed ESR files for up to $1.5 billion Hong Kong IPO: sources
HONG KONG (Reuters) - Logistics real estate developer ESR Cayman Limited, backed by private equity firm Warburg Pincus, has filed for a listing in Hong Kong to raise at least $1 billion, two sources said, with one saying the size may be as much as $1.5 billion.
FILE PHOTO: The name of Hong Kong Exchanges and Clearing Ltd (HKEX) is displayed at the bourse's entrance in Hong Kong, China, Jan. 24, 2018. REUTERS/Bobby Yip/File Photo/File Photo
ESR joins a smaller pipeline of companies looking to go public in Hong Kong this year, after the exchange took first place globally in terms of IPO volume last year, with companies raising $36.3 billion.
But while 2018 was a bumper year for listings, the post-listing performance was patchy, with companies such as Xiaomi and Meituan Dianping - which both raised billions of dollars in their IPOs - still trading below their offer prices.
Bankers expect investors to demand more reasonable valuations even as markets enjoy a rally, with the Hong Kong benchmark index up 11.5 percent so far this year.
One of the sources said the ESR’s initial public offering would likely take place in the next one to two quarters.
ESR declined to comment. The sources declined to be named as the information was not public.
The company was valued at almost $5 billion in its last funding round in May 2018, one of the sources said.
ESR, the largest Asia-Pacific focused logistics real estate platform, was formed by a merger of Shanghai-based warehousing services firm e-Shang and Singaporean logistics real estate investment firm The Redwood Group in 2016.
It develops and manages logistics facilities that cater to e-commerce companies, bricks-and-mortar retailers and manufacturers, according to the draft prospectus available on the Hong Kong stock exchange website on Friday.
ESR also manages a range of funds and investment vehicles that invest in logistics properties, the prospectus said.
It made a profit of $137.6 million on revenue of $170.2 million in the first nine months of 2018, an increase of about 7 percent year-on-year, according to the prospectus.
Chinese online retailer JD.com Inc invested $306 million in ESR in April last year through its logistics unit. ESR said that it would cooperate with JD.com in areas including property development, fund management and investment across the region.
Warburg Pincus co-founded e-Shang in 2011 with two Chinese entrepreneurs and brought in investors such as APG Asset Management NV, CPPIB and Goldman Sachs.
CLSA and Deutsche Bank are IPO’s sponsors.
BW Industrial Development JSC
The leading for-rent industrial real estate platform in Vietnam.
With a professional and passionate management team, BW Industrial Development JSC is well positioned as a fully integrated platform to capture the robust demand for modern logistics properties. With an existing development of 200 ha across Vietnam, BWID is currently providing multiple services including: Ready Built Factory For Rent, Logistics Warehouse For Rent & Built-to-suit Project in 08 Industrial Parks in which four locations in the North (in Hai Phong, Hai Duong & Bac Ninh) and other four locations in the South (in Binh Duong & Dong Nai).
When leasing BW Industrial’s ready built factories, BW Industrial provides transparency and supports investors to ensure cost and time efficiency for tenants. We support to facilitate speedy setup of manufacturing operations and government license applications in Vietnam. Hence, all of BW Industrial’s existing tenants always satisfy the quality of the ready built factories and value-added services that BW Industrial is providing
Hotline: (+84) 899 514 468
Email: [email protected]