Developer Franshion Properties (China) received approval from the Hong Kong stock exchange last week for its planned initial public offering of up to US$500 million next month, sources said.
The Shanghai-based listing hopeful planned to sell new shares amounting to 30 per cent of its enlarged share capital to fund existing projects and replenish its land bank, sources said.
The company started investor relations yesterday. The roadshow will take place between July 30 and August 9.
Final pricing will be set on August 10 and trading is expected to begin on August 17, according to a sale document sent to fund managers.
The offering had been increased from the initial US$350 million to US$500 million due to demand for other mainland property stocks, another source said.
'The final size of the fund to be raised will be decided only after response from institutional investors to pre-marketing is known in the coming two weeks,' the source said.
Franshion's two shareholders - Sinochem Corp and Sinochem Hong Kong, have agreed not to sell down their stakes in the 12 months after the stock's debut, the document shows.