HONG KONG/SYDNEY (Reuters) -Logistics firm GLP is contemplating a Hong Kong itemizing that might occur as early as subsequent 12 months, eight years after the Singapore-incorporated agency was taken non-public by an investor group, three sources with direct information of the matter mentioned.

GLP has held early stage discussions with a small variety of monetary advisers in regards to the relisting plan, mentioned two of the sources and a fourth particular person with information of the matter.

The timing of the itemizing and GLP’s potential valuation within the providing are too early to be decided and would rely on market situations, the 2 sources mentioned.

The agency’s whole web asset worth has reached about $20 billion, mentioned one of many two sources and the third supply.

GLP, which in accordance with its web site develops and operates logistics actual property, information centres, renewable power and associated applied sciences, with a presence in 17 international locations together with Brazil, China, Europe, India, Japan, the U.S. and Vietnam, didn’t reply to a Reuters request for remark.

Calls to its representatives went unanswered.

The sources didn’t wish to be recognized as the data was confidential.

GLP’s plan to relist is partly fuelled by China’s financial stimulus and property help measures launched over the previous few months which have led to an enchancment within the nation’s inventory markets, the fourth supply mentioned.

GLP is a serious business and logistics property supervisor and investor sentiment in direction of China’s property sector could be a key issue within the firm’s relisting concerns, two of the sources mentioned.

The relisting in Hong Kong, if finalised, can be a serious enhance for the monetary hub which has seen whole itemizing worth and variety of offers decline in recent times.

Firms have raised $10.1 billion in Hong Kong listings this 12 months, a rise over final 12 months due to Midea’s $4 billion itemizing in September, however nicely down on the $51.6 billion raised in 2020, in accordance with Dealogic information.

CORE EARNINGS

GLP mentioned in October its underlying core earnings for the primary half of this 12 months reached $2 billion.

Its information centre service revenue rose 54% within the first half of the 12 months in comparison with the year-ago interval to $86 million, pushed by the enlargement of the enterprise in China, GLP mentioned in an announcement on the time.

In 2017, a Chinese language non-public fairness consortium, backed by GLP’s CEO Ming Mei, received a bid to accumulate the then Singapore-listed agency for S$16 billion ($11.94 billion).

The consortium included non-public fairness corporations Hopu Funding Administration and Hillhouse Funding, actual property developer Vanke Group and the funding arm of Financial institution of China.

In October, GLP bought the worldwide enterprise of its asset administration arm, GLP Capital Companions (WA:), to Ares Administration (NYSE:) Corp for $3.7 billion paid with about $1.8 billion in money and the remaining in shares.

The fund administration enterprise had $126 billion property underneath administration with $12.5 billion of fairness dry powder by end-June, in accordance with GLP’s half-year report.

The arm raised round $3 billion of recent capital globally by early October, together with $2 billion of capital in China.

State-backed Vanke has been attempting to promote its 21% stake in GLP because it battles losses and debt stress amid China’s property market slowdown, mentioned two of the sources, including a deal isn’t imminent.

Vanke declined to remark.

($1 = 1.3395 Singapore {dollars})