Warburg Pincus-backed ESR seeks up to $1.24bn in Hong Kong IPO

Logistics real estate platform ESR Cayman is planning the biggest initial public offering (IPO) in Hong Kong this year as it seeks to raise up to US$1.24bn (€1.1bn).

The Warburg Pincus-backed pan-Asian group is selling 560.7m shares at an indicative price range of HK$16.2 to HK$17.2 a share, giving the company a market capitalisation of up to US$6.75bn after the IPO.

ESR, which began preparation for such a listing more than a year ago, expects its shares to start trading on the Hong Kong exchange on June 20.

It is believed that its key shareholders Warburg Pincus, and Goldman Sachs are selling down their holdings in the IPO. It is understood that main backer Warburg Pincus plans to cut its 38.35% to about 28%.

American private equity firm Warburg Pincus co-founded e-Shang with two Chinese entrepreneurs in 2011, and in 2016, e-Shang merged with the Singapore-based Redwood to form e-Shang Redwood, better known as ESR.

ESR has been ramping up its platform in the past three years through asset acquisitions and corporate takeovers in Singapore and Australia.

As of 31 December 2018, the group managed a portfolio valued at around US$16bn in key markets across Asia Pacific, held in a range of funds and vehicles as well as its own directly held property investments

Its key capital partners across its various platforms include Canada Pension Plan Investment Board, Ping An Real Estate and Allianz Real Estate.

 

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  • QN-2546

    Asset class: Real Estate Equity Fund (non listed).
    Asset region: Europe.
    Size: Total CHF 600m, approx. CHF 100-300m per fund investment.
    Closing date: 2019-06-28.

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