Date
6 December 2016
Evergrande is seeking 30 billion yuan in investment from strategic investors who will hold 12 percent of the Shenzhen-listed firm, while the public will hold 6 percent. Photo: Reuters
Evergrande is seeking 30 billion yuan in investment from strategic investors who will hold 12 percent of the Shenzhen-listed firm, while the public will hold 6 percent. Photo: Reuters

Evergrande eyes US$33 bln valuation for Shenzhen listing

China Evergrande Group (03333.HK) said it is seeking a market value of US$33.7 billion in its Shenzhen backdoor listing that will house most of its property assets, according to a document for investors seen by Reuters on Monday.

The injection of assets in Shenzhen Special Economic Zone Real Estate & Properties (Shenzhen Real Estate, 000029.CN) is aimed at taking advantage of higher valuations commanded on the mainland, the news agency said.

That would make it easier for heavily indebted Evergrande to raise funds, the report said.

The Shenzhen-listed firm will have most of its property assets as well as a football club, Guangzhou Evergrande Taobao Football Club Co Ltd.

At its estimated market value of 228 billion yuan (US$33.7 billion), the company would be worth 3.7 times the current Hong Kong-listed firm.

The future Hong Kong-listed firm will hold 82 percent of the Shenzhen-listed company and house all its other businesses across the finance, tourism, culture and the internet sectors such as Evergrande Health Industry Group (00708.HK) and internet finance firm HengTen Networks Group (00136.HK).

The document said Evergrande is seeking 30 billion yuan in investment from strategic investors who would hold 12 percent of the Shenzhen-listed firm, while the public would hold 6 percent.

It aims to complete the restructuring by the end of April.

Evergrande has captured investor attention after amassing some US$57 billion in debt, almost six times its market value, due to acquisitions of companies and land.

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