bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

paywallTypes

createdDate

publishedDate

sponsorType

urlAlias

moreOnThisArticles

commentCount

authorLocations

authors

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

articleSpeeches

socialHeadline

headline

images

flag

firstTopic

glossary

flattenTypeIds

image

relatedLinks

relatedNewsletters

__typename

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

SCMP Reporter

The move would see the rivals compete for investor attention as well as sales

Hong Kong investors may  soon have a choice of property  agencies in which to invest as Ricacorp Property unveils  a plan to go public - possibly by the end of next year.

Its listing would  blunt the edge afforded to Midland Realty (Holdings)  by being the only traded property  agency in Hong Kong - a position it has enjoyed for nine years.

Analysts said the desire to take Ricacorp - a company that is not under any funding pressure - to market  was mainly being driven by an improved property  outlook and  the listing difficulties being encountered by its parent,  Centaline Property Agency.

Managing director Ivan Ho  said the firm, expected to earn more than  $50 million  this year, aimed to earn an annual profit of about  $100 million  as a listed entity.

'We will report profit for two consecutive years by this year and we need one more year to be listed,' Mr Ho said.

He said the company had formed a board of directors that ran independently of Centaline   and owned more than 90 per cent  of Ricacorp -  thus satisfying one of the listing requirements.

Ricacorp, which has a market share of about 10 per cent by transaction value, would have boosted its  number of branches from  80 to 200 and would be a listed  firm within three years,   Mr Ho said.

Centaline,  which has a market share of 30 per cent by transaction value, is one of the two largest property agencies in Hong Kong. Its own  listing  has stalled as prominent shareholder Wong Man-yin, who holds more than 40 per cent  of Centaline,  disagrees with the plan.

Shih Wing-ching,  chairman of Centaline,  said the plan to list Ricacorp  was mainly  being driven by the smaller firm's management team.

'I am giving them a free hand, [Ricacorp's] expansion plan is not necessarily funded by listing; the agency is making enough money,' said Mr Shih, adding that the Ricacorp brand could benefit from  being listed.

Mr Shih seems unconcerned by the growing competition between Centaline and its own subsidiary, which  has focused on the luxury residential market since it was acquired three years ago.

'Competition is not necessarily a bad thing; it may actually stimulate businesses ... you can see that Centaline, which is not listed, has managed to become one of the largest agencies in Hong Kong even though our rival [Midland Realty] is a listed company,' Mr Shih said.

Eric Yuen,  the head of research at Dao Heng Securities, said a listing of Ricacorp would not  have a significant  effect on the  property market.

'Property agencies are not  capital-intensive businesses.  They're mainly driven by the property market and commission,' Mr Yuen said.

'Therefore, the listing is less likely to increase the agency's competitiveness in the market significantly.'



Ricacorp unveil plans to seek place on the main board