Date
20 September 2017
Wang Jianling controls one of China's biggest property developers and the world's largest cinema chain. Photo: Reuters
Wang Jianling controls one of China's biggest property developers and the world's largest cinema chain. Photo: Reuters

Dalian Wanda property unit eyes US$3.8 bln in Hong Kong listing

Dalian Wanda expects to raise up to US$3.8 billion in a Hong Kong listing of its property unit.

The company plans to sell 600 million shares at HK$41.80 (US$5.39) to HK$49.60 each, according to the Wall Street Journal.

The price range is a 47 percent to 55 percent discount to 2015 forecast net asset value of Dalian Wanda Commercial Properties, part of a diversified group controlled by Wang Jianling, who also operates the world’s biggest cinema chain.

Dalian Wanda Commercial, which sells apartments and operates shopping malls and hotels, will list on Dec. 23. Proceeds will be used to fund property projects.

Meanwhile, BAIC Motor plans to raise up to US$1.57 billion by selling shares at HK$7.60 to HK$9.80 each, about 6.4 to 8.3 times its forecast earnings for 2015, the report said.

BAIC could not immediately be reached for comment.

Both companies plan to start taking orders from investors on Monday as sentiment toward Hong Kong initial public offerings (IPOs) continues to improve.

China’s largest nuclear-plant operator, CGN Power Co., last week saw the retail tranch of its IPO more than 250 times oversubscribed.

The company raised US$3.16 billion after pricing the offering at the top end of the price range.

Investors expect the company tol benefit from China’s power policy which encourages clean energy use.

Dalian Wanda, which had a debt-to-equity ratio of 87.8 percent as of the end of June, may also benefit from China’s surprise interest-rate cut last month.

Shares of many debt-strapped Hong Kong-listed developers have surged recently.

Guangzhou-based Country Garden Holdings Co. has climbed about 9 percent since the rate cut while China Overseas Land & Investment is up 16 percent.

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