ESR price $1.6 billion IPO at mid point of guided range: sources

HONG KONG (Reuters) - ESR Cayman 1821.HK, the industrial property investor, has priced its shares at $HK16.80 each after its initial public offering (IPO) book build was finalised on Friday, two sources with direct knowledge of the matter said.

The Warburg Pincus-backed company will start trading on the Hong Kong Stock Exchange on Nov. 1 after it raised $1.6 billion in its second attempt to list on the public markets.

The company had given prospective investors guidance the shares would be priced between $HK16.20 and $HK17.40 before the bookbuild took place.

ESR Cayman and its main advisers, Morgan Stanley and Deutsche Bank, agreed last night to issue the new stock at HK$16.80, two sources confirmed.

The sources could not be named because the information was not yet made public.

The final pricing which was in line with guidance delivered earlier on Friday.

ESR initially targeted raising up to $1.45bln but increased the size of the deal to $1.6bln because of the demand from investors. Sources said the book was multiple times oversubscribed and investor allocations are being carried out now.

ESR this week relaunched its IPO following a failed attempt in June that would have been worth up to $1.24 billion.

At the time ESR, which manages a range of property-focused funds and its own property investments, cited market conditions as the reason for pulling the deal.

An ESR Cayman spokesman was not immediately available for comment. Morgan Stanley and Deutsche Bank spokeswomen declined to comment.

Earlier, household appliances maker JS Global Lifestyle Company Ltd 1691.HK pulled its initial public offering of up to HK$3.62 billion ($464 million), two sources told Reuters.

Reporting by Scott Murdoch; Editing by Alison Williams