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China Vanke weighing USD 1bn IPO for property management arm: Bloomberg
Posted on Friday, 12 April 2019 07:56
China Vanke, the country’s largest residential real estate developer, is said to be planning a stock market flotation of its property management division in Hong Kong, people familiar with the matter told Bloomberg.
According to the sources, the company is in discussions with potential advisors regarding a listing that could raise around USD 1.00 billion.
Such a share sale could take place next year, the insiders noted, asking not to be identified as the situation is private.
These same people cautioned that the potential deal is in the preliminary stages and details regarding funding and the timeline could change.
When contacted by Bloomberg, China Vanke did not respond, while a representative for the property management division said there are no current plans to go public.
The unit has 12,669 employees and joins other Chinese developers that have spun off their management operations recently, including Country Garden Holdings.
Founded in 1984, China Vanke is focused on developing, managing and selling properties across more than 60 mainland cities in the country.
Shares in the group declined 2.8 per cent to CNY 31.84 (USD 4.74) at 16:29 following the Bloomberg report today, giving the business a market capitalisation of CNY 354.95 billion.
China Vanke generated revenue of CNY 297.08 billion in the year ended 31st December 2018, up 25.2 per cent from CNY 237.34 billion in the previous 12 months.
Gross profit increased 43.3 per cent in CNY 109.95 billion in 2018 (2017: CNY 76.72 billion).
According to Zephyr, the M&A database published by Bureau van Dijk, there have been three other IPOs of Chinese real estate companies announced so far in 2019.
None of these deals had a disclosed value and they involved Tianjin Wanshixing Property Service Group, Changchun Wintime Property Services and Sichuan Languang JUSTBON Services Group.
© Zephus Ltd