Wanda and BAIC target year-end listings to raise US$5b
Dalian Wanda Commercial Properties and BAIC Motor Corp launch their long-awaited initial share sales, looking to raise more than a combined US$5 billion.
Dalian Wanda Commercial Properties and BAIC Motor Corp launch their long-awaited initial share sales today, looking to raise more than a combined US$5 billion.
The two initial public offerings have been trimmed in size, with a significant portion of shares pre-sold to a handful of investors before the deals are officially launched to ensure they will not flop because of increasing market volatility following a mix of plunging crude oil prices and a surge in the Shanghai and Shenzhen stock markets.
Wanda, controlled by mainland billionaire Wang Jianlin, has secured about US$2 billion from a consortium of 11 investors before it hits the road to market its US$3.86 billion share sale.
The cornerstone investors will get access to a sizeable stake in exchange for a six-month lock-up period.
The cornerstone investors, including the Kuwait Investment Authority, US hedge fund manager Och-Ziff Capital Management Group and Ping An Insurance (Group), account for more than half of the deal.
The mainland developer has offered to sell 600 million shares at an indicative range of HK$41.80 to HK$49.80 each.