Comprehensive M&A data with integrated detailed company information

Radiance files for Hong Kong IPO
Posted on Thursday, 26 March 2020 07:39
Property developer Radiance Holdings Group has hired ABC International, Citic Securities’ CLSA and Haitong as joint sponsors for an initial public offering (IPO) in Hong Kong.

The Cayman Islands-incorporated company is using proceeds to finance existing projects, including construction costs, to partially repay a portion of existing trust loans, and for general business operations.

Radiance said it has a national presence, regional focus and leading positions in select cities, and focuses on providing residential properties to first-time homebuyers and upgraders.

The group has expanded operations into five regions with strong economic growth potential in China, including the Yangtze River Delta, the Bohai Economic Rim, Southern China, Southwestern China and Northwestern China.

As of 31st December 2019, it had 144 projects at various stages of development, among which, 102 are being constructed by subsidiaries and 42 are being built by joint ventures and associates.

Radiance said in the 12 months ended 31st December 2017, 2018 and 2019, it had turnover of CNY 11.78 billion (USD 1.66 billion), CNY 15.87 billion and CNY 25.96 billion, respectively, representing a compound annual growth rate (CAGR) of 48.5 per cent.

The group’s profit for the year amounted to CNY 2.22 billion, CNY 2.30 billion and CNY 2.69 billion, respectively, representing a CAGR of 10.0 per cent.

It had net gearing of 1.7 per cent, return on total assets of 1.8 per cent and return on equity of 14.9 per cent, as of 31st December 2019.

According to the prospectus, the overall investment in real estate sector kept its increasing momentum with a CAGR of 6.1 per cent from CNY 9.50 billion in 2014 to CNY 12.03 billion in 2018.

Zephyr, the M&A database published by Bureau van Dijk, shows 300 IPOs have been announced in 2020 to date.

Of these, 33 listing worth an aggregate USD 572.00 million are by companies based in the Cayman Islands.

© Zephus Ltd