For golf resort operator Mission Hills the launch of two mega-sized property developments in Guangdong and Hainan next year could provide an ideal time to float its shares on the Hong Kong stock market.
The Post reported on Monday last week the world's biggest golf resort operator had been in talks with investment banks over plans to raise more than 1 billion yuan (HK$1.23 billion) by issuing yuan-denominated bonds in Hong Kong.
In a follow-up interview, chairman Ken Chu said on Wednesday that a share issue was another option for raising fresh capital.
'I will not reject the initial public offerings option. But it will depend on the timing,' he said.
As long as there are no big shocks in store for the market the right timing for a float may be when Mission Hills launches its latest two leisure property developments adjacent to its golf courses in Shenzhen and Haikou. The developments are slated for completion in December next year, but while total investment cost is projected at around 7 billion yuan, Chu believed their book valuation by the end of next year could be double that. 'Then, it could be the right time [for a share float],' he said.
While the company was exploring the idea of a yuan bond issuance, most of its capital expenditure to date had come from private funding and development loans, Chu said.