AMTD Deals | IPO of E-Star Commercial Management
On January 26, 2021, E-Star Commercial Management Company Limited (“E-Star” or “the Company”; 6668.HK), a leading commercial property operational service provider in the Greater Bay Area, was successfully listed on the Main Board of the Hong Kong Stock Exchange (“HKSE”). This deal makes the Company the first pure commercial property operational service provider ever listed on the Main Board of HKSE, and AMTD acted as a Joint Bookrunner and Joint Lead Manager in this deal, assisting the Company in landing the global capital market successfully.
E-Star offered a total of 250,000,000 shares at the offer price of HK$3.68 per share, which translated to an offering size of US$124 million (prior to the exercise of the over-allotment option). This transaction received strong interest from both retail and institutional investors. The retail tranche was oversubscribed by approximately 756.85 times and triggered a full clawback of 50% of the base offering size. E-Star’s IPO was also oversubscribed by 9 times among institutional investors, and four cornerstone investors were in with a total investment of US$40.8 million, including New World Development, SCGC Capital, Shenzhen Qichang Investment and Virtues Capital.
Mr. Benny Huang De-Lin (left), Chairman of the Board of E-Star, and Mr. Derek Chung (right), Head of Investment Banking of AMTD International
E-Star is a leading commercial property operational service provider in the Greater Bay Area (“GBA”), and it manages some of the most iconic and core properties in GBA. E-Star operates “COCO Park” for city shopping centers targeting consumers in the city, “COCO City” and “iCO” for regional shopping centers targeting consumers within a five-kilometer radius from such shopping centers, “COCO Garden” for community shopping centers targeting consumers within a one-to-three-kilometer radius from such shopping centers and “Top Living” for our high-end home furnishing shopping center. As of 30 September 2020, the Company entered into contracts to provide services for 53 commercial property projects with an aggregate contracted Gross Floor Area (“GFA”) of approximately 3,284,000 sq.m.. According to China Index Academy, as of 30 September 2020, E-Star ranked first in terms of the number of shopping centers in operation in Shenzhen, second in terms of GFA in operation in Shenzhen, fourth in terms of the number of shopping centers in operation in the GBA, seventh in terms of GFA in operation in the GBA and 14th among the “2020 Top 100 Commercial Property Companies in China”.
As a comprehensive financial institution rooted in Hong Kong, based in the GBA, backed by China and covering the globe, AMTD has assisted several Chinese real estate and property management companies in listing on the Main Board of HKSE, including Aoyuan Healthy Life (3662.HK), Radiance (9993.HK), Ganglong China Property (6968.HK) and Ye Xing (1941.HK). In June 2020, AMTD completed its first REIT transaction, assisting Dasin Retail Trust (SGX: CEDU) to complete its S$94 million private placement transaction. Also, AMTD has assisted many real estate companies from China and Hong Kong in issuing USD bond, including Far East Consortium, New World China Land, Regal Hotels International, Emperor International, CSI Properties, China Aoyuan Group, Radiance, Sinic, Ronshine China, LVGEM (China), Xinhu Zhongbao, Guangzhou R&F Properties, E-House (China) Enterprise, Logan Property, Oceanwide International, Yuzhou Properties, Central China Real Estate, Redsun Properties, China South City, Yida China, Yango, Jiayuan International, Zensun, Guangdong - Hong Kong Greater Bay Area (formerly Hydoo), Sunkwan Properties, Xinyuan Real Estate, DaFa Properties, Hongkun Weiye Real Estate, and Shinsun Real Estate. It demonstrates not only AMTD’s strong ability to win the client’s trust and help Chinese real estate companies achieve their capital raising and financing targets, but also AMTD’s long-term commitment to clients and continuous support for its clients’ growth and expansion.
AMTD is not only a reliable financial service provider to real estate companies, but also an active investor in the real estate sector. In September 2019, AMTD Property Development Group successfully completed the acquisition of landmark serviced apartment building Oakwood Premier AMTD Singapore from OUE with an investment of S$289 million; in December 2019, AMTD successfully acquired iClub Sheung Wan II Hotel, the second real estate deal consolidated into its financial statement, at an investment of HK$600 million.