Powerlong Real Estate Holdings and Ausnutria Dairy Corp, two listing candidates for the Hong Kong stock market, could raise as much as HK$7.39 billion combined from their planned flotations, according to sales documents sent to investors.
Powerlong Real Estate, which builds mass residential projects and large shopping centres in inland cities on the mainland, will sell 1 billion shares at an indicative range of HK$3.30 to HK$4.90 each, the term sheet said. If the over-allotment is exercised, the amount to be raised could reach HK$5.63 billion.
Part of the proceeds will be used to acquire new land reserves for development in China and settle outstanding land premiums. The firm will use some of the funds to repay bank loans and for working capital.
Trading will begin on October 9. Macquarie Group is the global co- ordinator on the sale.
The Fujian-based developer, which cancelled a share sale in July last year because of the weak market and poor valuations, builds mixed-use projects. These include mass residential units, street shops and large retail centres in second-, third- and fourth-tier cities.
Rather than focusing on high-end projects, the developer creates affordable properties to meet local needs. It sells residential space and street shops to generate funds to operate the large retail centre in a move to gain recurrent income.