June 5, 2019 / 2:26 AM / 3 months ago

ESR plans to raise up to $1.24 bln in Hong Kong's biggest IPO this year -term sheet

HONG KONG, June 5 (Reuters) - Logistics real estate developer ESR Cayman Ltd has opened the books on an initial public offering (IPO) that could raise up to $1.24 billion, in what would be Hong Kong’s biggest float so far this year, showed a term sheet seen by Reuters on Wednesday.

ESR Cayman, backed by private equity firm Warburg Pincus LLC , was initially due to launch its offering on Monday, but held off as markets were shaken by fear of escalating Sino-U.S. trade tension weakening the global economy.

The company, which manages a range of funds and vehicles as well as its own directly held property investments, is selling 560.7 million shares, or 18.4% of its enlarged share capital, at an indicative range of HK$16.2 to HK$17.4 ($2.07 to $2.22) a share, the term sheet showed.

At that range, the firm could raise $1.16 billion to $1.24 billion before any greenshoe or over-allocation option is included.

The deal is due to price on June 12 and trading of the shares is scheduled to start on June 20.

ESR declined to comment.

($1 = 7.8414 Hong Kong dollars)

Reporting by Julie Zhu and Jennifer Hughes; Editing by Christopher Cushing

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