Blackstone-Backed PAG Weighs Delaying $2 Billion Hong Kong IPO, Sources Say

  • In Business
  • 2022-08-17 02:16:58Z
  • By Bloomberg

(Bloomberg) -- PAG, an Asia-focused private equity firm backed by industry giant Blackstone Inc., is considering a delay of its planned initial public offering in Hong Kong amid market volatility, according to people familiar with the matter.

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The firm, led by Chinese dealmaker Weijian Shan, is now more likely to make its debut in 2023, the people said, asking not to be identified because the matter is private. 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 people said.

Considerations are ongoing and a listing could still happen soon if markets were to improve in the short term, the people said. 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 $5 billion this year from Hong Kong IPOs, a fraction of the $35 billion raised in 2021, data compiled by Bloomberg show.

The firm's offering could raise as much as $2 billion, Bloomberg News has reported. PAG is considering seeking a market capitalization of about $10 billion to $15 billion, people familiar with the matter have said.

PAG is one of Asia's largest alternative asset managers with $50 billion 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. It had about 293 investment professionals in 12 offices globally at the end of last year. It agreed in 2018 to sell a minority stake to Blackstone's Strategic Capital Holdings Fund.

Goldman Sachs Group Inc. and Morgan Stanley are joint sponsors of PAG's planned share sale, while UBS Group AG is acting as financial adviser, according to an exchange filing.

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