New | Chinese developer Evergrande engineers back-door listing on domestic stock market
Property giant to take control of Shenzhen Special Economic Zone Real Estate & Properties, which is expected to have a market value of nearly 230b yuan
According to a document, obtained by the South China Morning Post, Evergrande, controlled by Hui Ka-yan, the mainland’s ninth-richest man with personal net worth of US$9.6 billion, is seeking a capital injection of 30 billion yuan from strategic investors before conducting the reverse merger deal.
Evergrande will take control of Shenzhen Special Economic Zone Real Estate & Properties while injecting most of its property assets and other businesses encompassing finance, health, tourism, culture and football into the firm, according to the document.
China Citic Bank which is advising on the fundraising, said that the valuation of the A-share firm would hit 228 billion yuan after the back-door listing.
By the end of June 2016, Evergrande had 167 million square metres of land reserved for development, spread across 174 cities nationwide, the document showed.
Evergrande’s plan to go public on the mainland’s market came after authorities stepped up a clampdown on the overheated home market with a series of austerity measures including restrictions on home purchases and heightened mortgage down-payment rates.