Developer Wuzhou begins IPO campaign

Wuzhou International, a medium-sized mainland property developer, is preparing to raise US$200 million through an initial public offering in Hong Kong.

The company, based in Wuxi, Jiangsu province, kicks off a pre-marketing campaign today after having won listing approval from the stock exchange this month, two people familiar with the deal said.

They said the pricing of the deal would offer a "meaningful" discount to the company's assets, which could reassure investors concerned by recent market volatility.

"Apart from valuations, size has become an important issue when it comes to listing, as investors prefer to buy Chinese property firms with economies of scale and nationwide coverage," said a senior banker, who had experience in handling the listing of several property firms.

That preference could be a challenge to smaller candidates with offerings of less than US$200 million, he added.

Bocom International and Macquarie are sponsoring Wuzhou's listing.