LISTED on the Shenzhen stock exchange since January 1991, Shenzhen Vanke is planning a B-share issue later this month.
Vanke A shares have been available since listing in January 1991 and now the company plans to issue 45 million B shares through Standard Chartered, with applications closing on April 17.
Vanke is a property developer-trader-equity investor. The B shares are priced at 12.7 times prospective 1993 earnings. The company's A shares trade at about 28 yuan (HK$38), while the B shares are offered at 11 yuan, a discount of only 60 per cent.
The average discount of the nine listed B shares to A shares in Shenzhen is currently 93 per cent.
Vanke is the closest thing so far to a national Chinese property company. Its operations are not restricted to the Shenzhen area.
It has 13 offices across China, including one in Hongkong. The company specialises in property development, which may distinguish it from many other Shenzhen companies which dabble in property as an adjunct to their traditional businesses.