ESR Cayman to ‘upsize’ its initial public offering to US$1.6 billion as fundraising returns to Hong Kong’s capital market
- ESR Cayman will exercise an option to increase the size of its Hong Kong initial public offering by 15 per cent to US$1.6 billion
- The warehouse company will offer its shares at HK$16.80 a share, the midpoint of a price range of between HK$16.20 and HK$17.40, according to sources
Property investor ESR Cayman is exercising a 15 per cent “upsize” option that will lift its Hong Kong initial public offering (IPO) to US$1.6 billion, according to two sources, in what will be the city’s second biggest float this year.
Would-be investors have also been told the deal will be priced at HK$16.80 a share - the mid point of the initial range of between HK$16.20 to HK$17.40 - according to the sources who could not be identified because the information has not yet been made public.
Warburg Pincus-backed ESR is due to formally set the final price of the deal on Friday night in New York.
The extra shares in the “upsize” option come from existing shareholders, meaning 63 per cent of all the shares being sold are from existing investors, and just 37 per cent of the deal - or US$600 million - will be fresh money for the company.
ESR could not be reached immediately for comment.
The company this week relaunched its IPO following a failed attempt in June that would have been worth up to US$1.24 billion.