S.F. Holding’s Reit raises US$334 million after pricing Hong Kong IPO above midpoint

S.F. Holding’s real estate investment trust set the final price at HK$4.98 per unit, below the top-end of marketed range, sources say

Hong Kong’s first logistics-focused Reit attracts a range of investors, including private wealth managers and hedge funds

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SF Express is injecting three logistics centres worth HK$6.1 billion into SF Reit. Photo: Reuters

Published: 5:23pm, 12 May 2021Updated: 5:23pm, 12 May 2021

S.F. Holding’s real estate investment trust has set the final offer price at HK$4.98 per unit, enabling the largest listed courier provider in China to raise about HK$2.6 billion (US$334.7 million) from its Hong Kong initial public offering.

The final price of the SF Real Estate Investment Trust (SF Reit) was set above the midpoint of the initial range of HK$4.68 to HK$5.16 marketed to investors, according to people familiar with the transaction. It will announce the final allotment results on Friday.

SF Reit is selling 520 million units to institutional and retail investors in its IPO, which ended on Monday. Trading of the units is expected to start next Monday, under the stock code “2191”.

SF Reit is the first logistics-focused Reit to be listed in Hong Kong. Credit Suisse, JPMorgan and DBS are the joint bookrunners of the deal, with DBS also assuming the role of sole listing agent for the deal.

Employees handle packages at an SF Express store in Hong Kong. Source: Bloomberg

The deal attracted interest from property specialists, private wealth managers and hedge funds among others, according to these people. The final offer price implies that the Reit will pay a distribution yield of 5.52 per cent on an annualised basis based on its 2021 earnings forecast of HK$112.4 million, the people added.