SHANGRI-LA Asia will use about $140 million of the $700 million it intends to raise in its public float to refurbish the Kowloon Shangri-La Hotel, according to chairman and managing director Pho Ba Quan.
The listing of the Shangri-La group's Hongkong and China hotel arm will give the Hongkong stock exchange its 12th major hotel counter.
Shangri-La Asia will offer 150 million new shares to the public at $4.90 each.
The issue will raise approximately $697 million net of expenses, and the shares offered represent 15 per cent of the enlarged issued share capital.
Vigers Hongkong has valued the group's properties on a gross basis at $15.3 billion on February 28.
Adjusting the net asset value for that figure, the issue price represents a discount to net asset value of 27.5 per cent.
Market capitalisation based on the issue price will be about $4.9 billion.