Asia Witnessing A Flurry Of IPOs This Week With ESR Cayman Leading Pack

Asia is embracing a flurry of initial public offerings this week, with more than 20 deals totaling over $5 billion being marketed across the region.

The deals, originating from China to South Korea and Thailand, mark the busiest week in 2019, despite a year-to-date decline in Asia’s IPO value. First-time sales have raised $56 billion in the Asia Pacific region this year, down 26% from the same period in 2018, according to data compiled by Bloomberg.

Leading the rush is ESR Cayman Ltd., a warehouse developer backed by Warburg Pincus, in its second attempt to sell shares in Hong Kong. ESR and its shareholders are seeking to raise as much as $1.45 billion, offering more shares than it did in a postponed sale in June, while keeping the original price range. The company began taking orders today and aims for a Nov. 1 listing.

Hanwha Systems Co., which makes radars and other high-tech military equipment, also started taking orders today in South Korea. The company and its shareholders are seeking as much as 460 billion won ($390 million) in what would become the country’s biggest IPO this year.

Bangkok-based S Hotels and Resorts Co. opened its order book today for a sale of up to 7.9 billion baht ($261 million). The deal is set to become Thailand’s second-biggest IPO in 2019.

Also joining the party are JS Global Lifestyle Co. and YCIH Green High-Performance Concrete Co., both opening books in Hong Kong today. JS Global seeks to raise as much as $462 million, while YCIH targets up to $60 million.

China is leading the charge with a total of 16 companies taking orders this week. Fourteen of them are planning to list on the Shanghai Star board for technology startups. While most of their deal sizes are yet to be announced, the 16 firms could raised a combined $2.6 billion based on China’s average IPO value this year.

Companies that completed IPOs in Asia this year have delivered an average return of 66% in their first month of trading, after adjusting for deal sizes, data compiled by Bloomberg show.

UPCOMING LISTINGS:

• Chongqing Rural Commercial Bank
  • Size $1.5b
  • Shanghai stock exchange
  • Took orders Oct. 14; listing date TBA
  • CICC, China Sec.
• Hanwha Systems
  • Korea exchange
  • Size up to $390m
  • Pricing Oct. 31; listing Nov. 14
  • Citi, Korea Investment, NH Investment
• S Hotels and Resorts
  • Thailand exchange
  • Size up to $261m
  • Pricing Oct. 25; listing Nov. 12
  • Credit Suisse
• Ascentage Pharma Group International
  • Hong Kong stock exchange
  • Size $53m
  • Pricing Oct. 21; listing Oct. 28
  • BAML, Citi
• JS Global Lifestyle Co.
  • Hong Kong stock exchange
  • Size up to $464m
  • Pricing Oct. 25; listing Oct. 31
  • Credit Suisse, Morgan Stanley, ICBC International
• Bangkok Commercial Asset Management
  • Thailand stock exchange
  • Size at least $700m
  • Listing date TBA
• Lotte REIT
  • Korea stock exchange
  • Size $353m
  • Listing date Oct. 30
  • HSBC, Korea Investment & Securities, Nomura
• China Feihe
  • Hong Kong stock exchange
  • Size about $1b
  • JPMorgan, CMS, CCB International
• ESR Cayman Ltd.
  • Hong Kong stock exchange
  • Size up to $1.45b
  • Listing Nov. 1
  • Deutsche Bank, CLSA

More ECM situations we are following:

• ADX Group has engaged independent auditors to commence a pre-IPO audit and remains on track for its Nasdaq IPO in early 2022: founder Steven Renner
• China will speed up reform of the ChiNext board and improve rules on IPOs, M&As and refinancing: CSRC Vice Chairman Li Chao
• Another delay of Saudi Aramco’s IPO is unsurprising, with pressure on oil prices and the recent attack on the company’s processing plant among headwinds.
• Power to approve Hong Kong GEM listing applications will be removed from the Listing Department to the Listing Committee, effective from Jan. 1, 2020, HKEX says in a statement
• Capital market reforms are speeding up with measures allowing backdoor listings on the ChiNext: China Securities Journal
• China’s securities regulator gives written approval to IPOs of Guangzhou GRG Metrology & Test, Shandong Taihe Water Treatment Technologies, Lihe Technology Hunan and Zhubo Design.

Bloomberg