China Logistics Said to Delay $400 Million IPO on Brexit Jitters

  • Carlyle-backed warehouse developer to start offering June 29
  • Hong Kong’s benchmark index slumps most in four months Friday

China Logistics Property Holdings Co., the warehouse developer backed by Carlyle Group LP, will delay the launch of its $400 million Hong Kong initial public offering, people with knowledge of the matter said. 

The Shanghai-based company will postpone the start of the share sale until June 29 due to volatile market conditions after Britain voted to leave the European Union, according to the people. It had originally scheduled to begin taking investor orders on June 27, one of the people said, asking not to be identified as the information is private.

China Logistics Property’s IPO is set to take place during one of the most stressful times for global markets in years. The benchmark Hang Seng Index slumped the most in four months Friday after the U.K. voted to exit the European Union, rejecting the continent’s postwar political and economic order and raising uncertainty over what impact it could have on the global economy.

Hong Kong first-time share sales have raised $5.6 billion this year, down from $16.7 billion the same period in 2015, data compiled by Bloomberg show. Credit Suisse Group AG and Deutsche Bank AG are joint sponsors of the China Logistics Property listing, according to a March 30 pre-listing exchange filing

China Logistics Property began gauging investor interest June 13 for an offering of about $500 million, according to terms for the deal obtained by Bloomberg earlier. A Hong Kong-based external spokeswoman for China Logistics Property declined to comment.

Demand for warehouses and logistics services in China is rising as more consumers make purchases online. China Logistics Property’s revenue jumped 142 percent last year to 163.2 million yuan ($24.8 million) after it doubled the number of logistics parks in operation.

E-commerce operator JD.com Inc., package-delivery service SF Express Group Co., sourcing company Li & Fung Ltd. and smartphone maker Xiaomi Corp. are among China Logistics tenants, according to its website.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE