Logistics developer ESR Cayman scrubs Hong Kong IPO amid ‘market uncertainties’, delaying likely biggest listing this year in Asia
- Plans for what may have been the biggest share listing in Asia so far this year were pulled after protests
- Analysts point to low market liquidity as a factor
Logistics real estate developer ESR Cayman said Thursday it would postpone its listing on the Hong Kong stock exchange, becoming the latest company to scale back plans amid escalating tensions related to the city’s controversial extradition bill and to the trade war between the US and China.
“In light of the current market conditions, the company, having consulted the joint global coordinators, has decided that the global offering will not proceed at this time,” the largest logistics real estate operator in Asia-Pacific said in a statement.
The IPO would have overtaken Ningxia Baofeng Energy Group as the largest in Asia so far this year, if it fulfilled its plan to raise as much as US$1.24 billion, according to data provider Refinitiv.
Li Kwok-suen, fund manager of Phillip Capital, said the delay makes sense in light of market conditions.
“The market sentiment is not good recently, particularly after the protest against the extradition bill,” Li said. “Liquidity is low in the market. Investors now are very cautious and it may affect the fundraising target.”