Franshion Properties (China), a property unit of state-owned Sinochem Group, has allotted 27.6 per cent of the shares available in its US$334 million initial public offering to three cornerstone investors, according to a sale document obtained by fund managers.
New World Development chairman Cheng Yu-tung, through his privately owned Chow Tai Fook Nominees and his mainland property flagship New World China Land, Singapore government investment arm GIC and hedge fund Stark Investments have agreed to subscribe to a total of 390 million shares via the global offering, the document shows.
The developer is selling 1.41 billion new shares at an offer price of between HK$1.85 and HK$2.35 each, aiming to raise as much as US$424 million, market sources said.
The offering represents 30 per cent of the firm's enlarged share capital.
The international offering was launched yesterday and will end on August 9. Pricing will be determined a day later.
Trading is expected to begin on August 17.
Deutsche Bank is the bookrunner of the share sale.
