Specialist Mongolian developer Asia Pacific Investment Partners to launch December IPO in London

Hong-based real estate firm, APIP, plans full listing of its share capital on London’s alternative investment market

PUBLISHED : Monday, 28 November, 2016, 5:09pm
UPDATED : Monday, 28 November, 2016, 11:13pm

Asia Pacific Investment Partners (APIP), the Hong Kong-based real estate developer, is to launch a full initial public offering in London next month, on the SME-dominated alternative investment market (AIM).

The company, which invests and develops properties primarily in Mongolia, has applied to list its entire share capital to trade on AIM, which allows smaller firms more flexibility than London’s main stock market.

APIP plans to use the funds raised, on further expansion of its real estate portfolio, including Mongolia’s middle-income residential market and providing mortgage loans to individuals and businesses in Mongolia, according to Lee Cashell, its chief executive officer, for which it has a licence.

Further down the line there could also be expansion into Myanmar and other emerging markets.

“We have spent the last 15 years in the Mongolian market,” Cashell said. “We believe the group is now well positioned to capitalise on the strong growth opportunities in the Mongolian economy.”

APIP’s revenue rose in the first half of the year to US$1.36 million compared with US$1.02 million in the same period last year.

The company has developed around 53,000 square metres of real estate across five developments in the country’s capital Ulaanbaatar, and holds eight plots of land on which it believes it can build a further 450,000 square metres.

We believe the group is now well positioned to capitalise on the strong growth opportunities in the Mongolian economy
Lee Cashell, its chief executive officer

Its real state assets in Mongolia were estimated to be worth US$312.8 million, according to DTZ Cushman & Wakefield.

APIP said it has “strong growth underpinned by current and near-term projects, future planned projects and development and growth of prime land bank at attract cost”.

“Cashell first indicated back in October 2012 he planned to float the company in Hong Kong by early 2014, but did not clarify why they ultimately decided to list in London.

Hong Kong still leads the world’s IPO market, but unlike London Stock Exchange it operates under the principle of “one share, one vote”, which prevents companies with a dual-class structure from floating their shares.

Hong Kong represented 22 per cent of worldwide listing funds in the first nine months of the year with 40 issuers, according to Thomson Reuters data. London accounted for 3.6 per cent with nine IPO issuers.