PAG weighs delaying Us$2bil Hong Kong IPO

HONG KONG: PAG, an Asia-focused private equity firm backed by industry giant Blackstone Inc, is considering a delay of its planned initial public offering (IPO) in Hong Kong amid market volatility, according to sources.

The firm, led by Chinese dealmaker Weijian Shan, is now more likely to make its debut in 2023, the sources said.

PAG is keen to avoid the sale taking place against a backdrop of stock market volatility, potentially leading to investors demanding steep discounts and seeing weak trading in the first days after listing, the spurces said.

Considerations are ongoing and a listing could still happen soon if markets were to improve in the short term.

Representatives for PAG didn’t immediately respond to requests for comment by phone and email.

PAG applied for an IPO in Hong Kong in March and was poised to be one of the financial hub’s biggest listings in a year that’s seen a drought of major share sales.

Companies have raised Us$5bil (Rm22.3bil) this year from Hong Kong IPOS, a fraction of the Us$35bil (Rm156.3bil) raised in 2021, data compiled by Bloomberg showed.

The firm’s offering could raise as much as Us$2bil (Rm8.9bil), Bloomberg News has reported.

PAG is considering seeking a market capitalisation of about Us$10bil (Rm44.66bil) to Us$15bil (Rm67bil).

PAG is one of Asia’s largest alternative asset managers with Us$50bil (Rm223.4bil) under management as of March 15, according to its website.

The firm runs a variety of strategies including private equity, private debt, distressed, real estate and absolute return funds.