Jin Jiang International Hotels Development, the mainland's largest hotel operator, plans to raise as much as HK$2.42 billion in an initial public offering next month to fund expansion, according to a term sheet distributed by bookrunner UBS.
Jin Jiang, which is selling 1.1 billion shares, approached institutional investors with an indicative price range of HK$1.81 to HK$2.20 a share during the roadshow that started yesterday.
The institutional tranche of 90 per cent of the IPO is already covered, according to a source.
The retail offering will open on Wednesday and close on December 7. The shares will be priced on December 9 and start trading on December 15.
The offering represents 25 per cent of the company's enlarged share capital and 27.7 per cent if the 15 per cent or 4.4 billion share overallotment option is exercised.
Should retail investors apply for between 15 and 50 times the number of shares available to them, the institutional tranche will drop to 70 per cent of the total offering. UBS and BNP are arranging the sale.
