Guangzhou R&F Properties launches institutional and retail tranches today
Guangzhou R&F Properties yesterday resumed its initial public offering after a brief hiatus despite lacklustre demand for recent issues and poor sentiment towards the property sector.
The mainland developer, which hopes to tap the Hong Kong market for up to $2.21 billion, said it would open both the institutional and retail tranches of the offering today ahead of a July 14 listing.
It plans to sell 183.92 million shares, or 25 per cent of its expanded share capital, at an indicative price range of $10.70 to $12.03 per share.
'The bankers have tested the waters over the past few days and are confident that there is sufficient appetite among institutions,' a person familiar with the deal said.
'If the institutional tranche is fully covered, the retail book should be fine,' the source said. 'We are not looking for hundred times of oversubscriptions.'
The company received approval from the listing committee for its offering earlier this month but decided to postpone it in light of challenging market conditions.