Integrated logistics real estate provider ESR Cayman is reportedly looking to raise as much as $1.45 billion in its second attempt to go public in Hong Kong this year.
The Asia-Pacific-focused developer has apparently revived its previous initial public offering (IPO) plans given the recent increase in confidence and investor appetite in Hong Kong.
In June, ESR Cayman announced that it was halting its IPO plans due to unfavorable market conditions. The company, which was co-founded by its current highest shareholder Warburg Pincus, initially wanted to raise around $698.8 million in its IPO. The figure is based on the top-end of its original IPO price range.
ESR Cayman officially unveiled its new proposal on Monday, with a slightly increased IPO offer price. At the midpoint of its price range, the company should raise about $563.3 million.
However, if it manages to hit the top-end of the range, the company could raise funds that will be breaching the $1 billion mark.
ESR Cayman's IPO will see it selling around $653.7 million shares, with a price range of between HK$16.20 and HK$17.40 per share. At its proposed price range, the company will have a total market valuation of between $6.3 billion and $6.7 billion, taking into account its old and new shares.
The company has also opted for the "greenshoe" option in its IPO, essentially allowing it to sell an additional 15 percent of its shares to meet any excess demand. CLSA and Deutsche Bank are joint sponsors in the IPO, while Morgan Stanley, Citi, Credit Suisse, Goldman Sachs serve as its global coordinators and book runners.
The company's chairman, Jeffrey Perlman, mentioned during a press briefing that the ESR Cayman's stock should be able to offer shareholders infrastructure-like returns thanks to its asset-light model.
Perlman also addressed questions regarding his company's decision to back out of its IPO plans in June. The executive mentioned that the geopolitical environment and macro-environment during that time were simply less favorable and they felt that it was not yet the best time to go public. Perlman added that this time around, the company had seen a massive demand from public market investors, who apparently really wanted the company to become public.
If the company manages to hit the top range of its IPO offer price, it could very well become the second-largest IPO in Hong Kong this year.
For now, the top position is currently being held by Budweiser Brewing Company APAC, which managed to raise more than $5 billion last month. ESR Cayman's stocks are expected to be listed in Hong Kong and start trading on November 1.
