ESR Cayman shelves what could have been Hong Kong's largest IPO in 2019

If the share sale pushed through, the firm would have raised an estimated $9.12b.

Logistics property platform ESR Cayman is postponing its proposed listing on the mainboard of the Stock Exchange of Hong Kong (SEHK) after citing volatile market conditions, an announcement revealed.

“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,” ESR Cayman said in a statement. Accordingly, the International Underwriting agreement relating to the international offering will not be entered into, and the Hong Kong Underwriting agreement relating to the Hong Kong public offering would not become unconditional.

The firm was set to offer 560.7 million shares through its Hong Kong initial public offering (IPO) on 6 June, of which 94.4% would be placed for international placing whilst the rest were for Hong Kong public offer. The indicative offer price range lay between $16.20 and $17.40 apiece.

Assuming the over-allotment option was not exercised, and the offer price is $16.80, the net proceeds from the offering would have been approximately $9.12b.

ESR Cayman had previously delayed what could have been one of Hong Kong’s biggest offerings amidst trade tension jitters. The firm was due to launch its US$1.4b Hong Kong IPO on 3 June, though it could still open books for the deal depending on the market mood.