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Asia-focused PAG files for Hong Kong IPO seen hitting $2bn

Alternative investment company seeks market cap of at least $10bn

Goldman Sachs and Morgan Stanley are sponsors of PAG's planned IPO, according to a prospectus filed with the Hong Kong Stock Exchange.   © Reuters

HONG KONG -- Asia-focused alternative investment company PAG has filed for an initial public offering in Hong Kong that could raise $2 billion in one of the largest listings in the city this year.

Goldman Sachs and Morgan Stanley are joint sponsors of the planned share sale, according to a prospectus filed with the Hong Kong Stock Exchange on March 25.

UBS Group AG is acting as the financial adviser to the deal.

PAG, which has about $50 billion in assets under management, has yet to reveal the IPO pricing and the number of shares it intends to sell. The company could pull in as much as $2 billion, as it was seeking a market capitalization of about $10 billion to $15 billion, Bloomberg reported, citing sources.

The sources said that PAG has not set precise terms of the offering, and details of the planned listing could change. Some advisers have proposed a valuation as high as $20 billion based on multiples from recent deals in the sector, though the company may end up targeting a more conservative figure, some of the sources said.

Led by Chinese dealmaker Weijian Shan, PAG invests across asset classes, including private debt, private equity, venture capital, real estate, infrastructure and hedge funds.

PAG said in the prospectus that assets under management have grown approximately sixfold over the past decade, with nearly 300 institutional investors worldwide.

The company operates 10 offices in the Asia-Pacific region with close to 600 employees. Since its inception in 2010, PAG has invested over $70 billion as of Dec. 31, 2021, with 53% of the capital allocated to greater China followed by capital injections into Australia, New Zealand, North Asia, India and Southeast Asia.

It agreed in March 2018 to sell a minority stake to Blackstone's Strategic Capital Holdings Fund. Terms of the deal were not disclosed.

In July 2021, PAG announced the closing of its oversubscribed growth-focused, private equity fund PAG Growth II, with $525 million in capital commitments.

DealStreetAsia previously reported that the company was looking to raise $9 billion for a new buyout fund, which would be 50% larger than its $6 billion predecessor.

For the original story from DealStreetAsia, click here.

DealStreetAsia is a financial news site based in Singapore that focuses on private equity, venture capital and corporate investment activity in Asia, especially Southeast Asia, India and greater China. Nikkei owns a majority stake in the company.

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