Investors Advised To Look Into ESR Cayman’s E-Commerce Stock
ESR Cayman is expected for greater things in the logistics market in Hong Kong. According to SCMP, the logistics firm is set to become Hong Kong's largest initial public offering. It is also seen as one of the many logistics firms about to benefit from "high prime logistics yield" in the Asia-Pacific region, among many others.
This, however, didn't mean that it's a good time to be investing; due to the US-China trade dispute, the Hang Seng Index is down by more than 10 percent since May 3.
Traders have been trying to adjust to the economic impact of the renewed escalation in the dispute by going off on a massive "broad-based" sell-off in most equity markets.
The prospect for ESR Cayman--the world's largest logistics property developer focusing on Asia--is very big. The logistics firm is seeking to raise $1.24 billion in a sale of shares which will be priced by June 12. The trading is expected to be on June 20. It's enough to prove that investments in industrial real estate in the Asia-Pacific region is well worth it.
The company, meanwhile, is focusing on other things as well. The logistics property developer had started an initial public share offering (IPO) on Wednesday, in the hopes of generating $1.24 billion in Hong Kong, Reuters reported. It's the biggest funding round in Hong Kong in 2019 so far.
The company received backing from equity firm Warburg Pincus LLC. It was supposed to launch its offering on Monday, but markets were affected by the escalating Sino-American trade dispute. ESR is a manager for a range of different funds, but it also manages it's own "directly held" properties as well.
Seven shareholders are seeing their shares being sold in the IPO. This includes Warburg Pincus as well as Goldman Sachs Investments Holdings (Asia) Ltd and JD.com Inc's subsidiary, Jingdon Logistics Group Corp, according to reports. Warburg Pincus unit WP OCIM was also reportedly considering cutting down its holdings in the company to 28%, down from a previous 38.35%.
Logistics in Asia didn't take its cue from the fast growth of different online retailing units. The sector surged at the right time when prices from both commercial and residential markets are at an all-time high. The sector is seeing something that most don't, and that is one of the reasons why it is worth a risk for investors to ride the current logistics wave.