Asia-focused investment manager PAG might delay its $2-billion Hong Kong IPO until next year, according to a Bloomberg report.
While the plan to list is still on, the report said the setback was due to the stock market volatility that could send prices down and lead to gloomy trading.
Bloomberg, citing sources, said the IPO could still happen soon if markets were to improve in the short term.
DealStreetAsia has reached out to PAG for comment.
PAG had filed for its IPO in March, reportedly with a $2-billion target, which would become one of the largest listings in Hong Kong this year.
Bloomberg had then reported the alternative investment firm was seeking a market capitalisation of about $10-15 billion.
PAG said in its listing prospectus that it planned to use around three-quarters of the proceeds from the proposed IPO to launch new strategies and seek growth through acquisitions.
The firm added its medium-term fundraising pipeline includes the third fund for its growth strategy, which focuses on consumption-driven “new economy” sectors in China; and PAG Asia V.
Additional funds could include a private equity impact fund and venture capital.
The firm is currently in the market to raise $9 billion for its fourth buyout fund, PAG Asia IV, which would be 50% larger than its predecessor.
The global market has also witnessed many IPOs postponed in Q2 2022 due to heightened volatility caused by geopolitical tensions and macroeconomic factors, declining valuation and poor post-IPO share price performance, according to the EY’s Global IPO Trends report for the quarter.
The Asia-Pacific region recorded 181 IPOs, raising $23.3 billion in proceeds in Q2, a year-on-year decline of 37% for volume and 42% in proceeds, the report showed.
“A convergence of factors (COVID-19 restrictions, geopolitical unrest, weakened stock market, economic uncertainty and rising interest rates) had a negative impact on IPO activity in Hong Kong,” it noted.
PAG, led by Chinese dealmaker Weijian Shan, invests across asset classes, including private debt, private equity, venture capital, real estate, infrastructure and hedge funds.
With the support of a global network of nearly 300 institutional investors, PAG said in the prospectus that its AUM has grown approximately six-fold over the past decade. The firm manages about $50 billion.
The firm operates across 10 offices in the Asia-Pacific region with close to 600 staff. Since its inception in 2010, PAG has invested a total of over $70 billion as of December 31 2021, with 53% of the capital being allocated to Greater China, followed by its capital injections into Australia and New Zealand, North Asia, India and Southeast Asia.