Shanghai Forte Land will tap up to $1.4 billion from the equity market when it relaunches its bid for a listing on the main board this month.
The biggest private developer in Shanghai will issue 638.3 million H shares, or 30 per cent of its enlarged issued share capital, at between $1.60 and $2.20 each, according to market sources.
Institutional investors will be offered 90 per cent of the shares, with the remainder going to retail buyers. Price-earnings multiples range from 7.7 to 10.6 times based on last year's earnings.
In 2002 and last year, the company unsuccessfully tried to list on the main board but received lukewarm responses.
To boost sentiment this time, the developer is inviting strategic investors to take a stake in the new issue, according to a source close to the deal.
Listing sponsor Morgan Stanley says Shanghai Forte is expected to earn 527 million yuan this year, up 19 per cent from an estimated net profit of 443 million yuan last year. In 2002, the developer booked a net profit of 341 million yuan.
