HONG KONG
ESR CONSIDERS SEPTEMBER LAUNCHLogistics property developer ESR CAYMAN,
WHICHûPULLEDûITSû(ONGû+ONGû)0/ûINû*UNE ûISû
considering bringing the deal back as early
as September, said people familiar with the
situation.
The company has added Morgan Stanley to
HELPûARRANGEûTHEûmOATûANDûISûSEEKINGû
investor feedback on the valuation, said the
people.
4HEûDEALûSIZEûISûLIKELYûTOûBEûSMALLERûTHANû
THEûUPûTOû(+BNû53BN ûOFFERINGû
the company targeted in June but it has not
yet been decided, said the people.
Other people close to the deal said the IPO
COULDûBEûCLEAREDûATûAûSIZEûOFû53Mn
$800m with good support from high-quality
long-only investors.
In June, the Warburg Pincus-backed
company marketed 561m shares (58%
primary/42% secondary) in an indicative
RANGEûOFû(+nûPERûSHARE
The range represented a pre-money
market capitalisation of US$5.6bn–$6bn
and a 2020 forecast P/E of 16.7–17.9 and a
2020 forecast EV/Ebitda of 14.3–15.
CLSA and Deutsche Bank are sponsors, and
global coordinators with Citigroup, Credit
Suisse, DBS and Goldman Sachs.
INDIA
TWO ISSUERS CUT IPO SIZETwo Indian issuers will raise less than
planned from their IPOs as weak stock
markets prompt shareholders to sell fewer
shares at depressed valuations.
Solar engineering procurement and
construction company STERLING AND WILSON
HASûDOWNSIZEDûITSû)0/ûTOûAûMAXIMUMû
Rs31bn (US$454m) from Rs45bn because of
volatile market conditions.
The offer, comprising 40m–40.3m
secondary shares from controlling
shareholders Shapoorji Pallonji & Company
and founder and managing director
+HURSHEDû$ARUVALA ûISûMARKETEDûAûPRICEû
range of Rs775–Rs780 per share.
The shares on offer represent 24.98%–
25.15% of the company’s post-offer equity
share capital.
Anchor books will open on August 5
while the rest of the offer will run from
August 6 to August 8.
In the nine months to December 31 the
company recorded revenue of Rs61bn
compared with Rs32bn in the same period
OFûû.ETûPROlTûROSEûTOû2SBNûFROMû
Rs1.7bn during the same period.
Axis Capital, Credit Suisse, ICICI Securities,
Deutsche Bank, IIFL Holdings and SBI Capital
are the joint global coordinators and
bookrunners with IndusInd Bank and Yes
Securities.
Sterling and Wilson builds solar power
PLANTSûINû)NDIA ûTHEû-IDDLEû%AST û!FRICA û
Australia and Europe.
-EANWHILE ûMICROlNANCEûLENDERû
SPANDANA SPHOORTHY FINANCIAL has set the
PRICEûRANGEûFORûAûDOWNSIZEDû)0/ûOFûUPûTOû
Rs12bn (US$174m) at Rs853–Rs856 per
share.
The anchor book opens on Friday and
the rest of the offer runs from August 5 to
August 7.
The offer comprises primary shares for
Rs4bn and 9.36m secondary shares. The
secondary tranche has been reduced from
13.1m initially. Originally, the IPO was
expected to raise Rs15bn.
Spandana recorded revenue of Rs10.4bn
INûTHEûlNANCIALûYEARûTOû-ARCHûûû
AGAINSTû2SBNûINû&9û.ETûPROlTûROSEû
to Rs3.1bn from Rs1.9bn.
Axis, ICICI Securities, IIFL Holdings and JM
Financial are the joint global coordinators
and bookrunners with IndusInd Bank and
Yes Securities.JAPAN
STEMRIM PRICES IPO AT BOTTOM
OF RANGEJapanese biopharmaceuticals company
STEMRIM has priced its TSE IPO at the
bottom of the indicative price range,
VALUINGûTHEûDOWNSIZEDûDEALûATûcBNû
(US$77m).
The IPO comprises 8.1m new shares and
300,000 secondary shares that were
MARKETEDûATûc nc ûEACHû4HEû
c ûISSUEûPRICEûVALUESûTHEûCOMPANYûATû
cBN
The retail tranche was around 10 times
covered and the institutional portion more
than twice covered. About 70% of the deal
was allocated to retail buyers and the rest
to institutional investors. Roughly 70% of
the institutional book was placed with
long-only funds, according to a person
close to the deal.
)NITIALLYû3TEM2)-ûPLANNEDûTOûOFFERûMû
primary shares and 2.4m secondary shares
INûAûc nc ûRANGE
Executive vice-president Takehiko
9AMAZAKIûSOLDû ûSHARESûANDûDIRECTORû
4SUTOMUû+ANEZAKIû ûSHARESû#%/û
+ENSUKEû4OMITAûDECIDEDûNOTûTOûSELLûSHARESû
in the IPO.
Shares are expected to start trading on
August 9.
SMBC Nikko is bookrunner.SINGAPORE
UOB HAMPSHIRE REIT HIRES FOR SGX IPOUOB HAMPSHIRE REIT has hired Credit Suisse and
UBS to manage a Singapore Exchange REIT
IPO of around US$400m, people with
knowledge of the transaction said.
The IPO could be launched as early as
the fourth quarter.
United Overseas Bank is already working on the
deal. Asset manager UOB Global is part of
Singapore’s UOB Group while US-based
Hampshire Companies is a real estate manager.
#URRENTLYûTHEREûAREûlVEû2%)4SûLISTEDûONû
the SGX with purely US assets.FRASERS LOGISTICS PRICES AT TOPFRASERS LOGISTICS & INDUSTRIAL TRUST has raised
S$258m (US$188m) through the sale of
220m new shares at the top of a S$1.143–
$1.173 price range.
4HEûlNALûPRICEûTRANSLATESûINTOûAûû
discount to the pre-deal close of S$1.20. Books
were around three times covered with
participation from 60 accounts. Existing long-
only investors, property specialists,
multi-strategy funds and private banking
clients were the buyers. The top 10 investors
were allocated close to 70% of the deal.
The trust is raising the funds for an
acquisition of logistics properties in
Germany and Australia. Bank of America
Merrill Lynch, Citigroup, DBS and OCBC are the
joint lead managers and underwriters.
Frasers said on July 4 it planned to acquire
nine properties in Germany and three
properties in Australia for a total of
A$644.7m (US$437.6m).CRCT SEALS PLACEMENTCAPITALAND RETAIL CHINA TRUST has raised
S$154m (US$112m) from a private
placement as part of a two-part equity
offering to fund its purchase of three
shopping malls in China.
The trust sold 105m new units at
the top of the S$1.428–$1.469 price
range, a discount of 5.2% to the pre-deal close.
The books were more than three times
covered with more than 50 investors
participating. There was strong support
from existing shareholders, long-only
investors, property specialists and
fundamental hedge funds. The top 15
investors took about 75% of the deal.
The forecast 2019 yield for the trust is
6.9%–7.1%.
-EANWHILEû#2#4ûISûALSOûRAISINGûUPûTOû
S$125m through a pre-emptive offering. About
87m units will be sold at the top of the S$1.42–
$1.44 range each on an 87-for-1,000 basis.