Logistics Firm GLP Considers Hong Kong Listing
Possible Listing as Early as Next Year
GLP, a Singapore-incorporated logistics company, is considering a Hong Kong listing that could happen as early as next year, according to sources familiar with the matter. The company has held early-stage discussions with a few financial advisers about the potential listing, sources said.
Timing and Valuation Unclear
The timing and potential valuation of the listing are still unclear and will depend on market conditions, the sources said. The company’s total net asset value has reached around US$20 billion, one of the sources added.
GLP’s Business Operations
GLP develops and operates logistics real estate, data centers, renewable energy, and related technologies, with a presence in 17 countries, including Brazil, China, Europe, India, Japan, the US, and Vietnam. The company did not respond to a Reuters request for comment, and calls to its representatives went unanswered.
Reasons for the Relisting
The company’s plan to relist is partly driven by China’s economic stimulus and property support measures released over the past few months, which have led to an improvement in the country’s stock markets, a source said. Investor sentiment towards China’s property sector will be a key factor in the company’s relisting considerations, two sources added.
Impact on Hong Kong Stock Market
A relisting in Hong Kong, if finalized, would be a major boost for the financial hub, which has seen a decline in total listing value and number of deals in recent years. Hong Kong has raised US$10.1 billion in listings this year, an increase from last year due to Midea’s US$4 billion listing in September, but still down from the US$51.6 billion raised in 2020, according to Dealogic data.
Recent Developments
In October, GLP reported its underlying core earnings for the first half of the year reached US$2 billion. Its data center service income rose 54% in the first half of the year compared with the year-ago period to US$86 million, driven by the expansion of the business in China.
Background on GLP
GLP was acquired by a Chinese private equity consortium, backed by its CEO Ming Mei, in 2017 for US$11.94 billion. The consortium included private equity firms Hopu Investment Management and Hillhouse Investment, real estate developer Vanke Group, and the investment arm of Bank of China.
FAQs
Q: What is GLP’s current net asset value?
A: GLP’s current net asset value is around US$20 billion.
Q: Why is GLP considering a Hong Kong listing?
A: GLP is considering a Hong Kong listing to take advantage of the improving China’s stock market and to raise funds.
Q: When could the listing happen?
A: The listing could happen as early as next year, but the timing is still unclear and will depend on market conditions.
Q: How much has Hong Kong raised in listings this year?
A: Hong Kong has raised US$10.1 billion in listings this year, an increase from last year due to Midea’s US$4 billion listing in September.
