New | Li Ka-shing’s Cheung Kong Property Holdings to list in Hong Kong on June 3
Cheung Kong Property Holdings (CK Property), the new property arm of Hong Kong’s richest man Li Ka-shing, will list on the main board of the Hong Kong Stock Exchange with stock code 1113 on June 3, CK Property announced on the website of the exchange on Friday.
Shareholders of CK Property’s Hong Kong-listed parent, CK Hutchison Holdings (CKH Holdings), will receive one share of CK Property for each CKH Holdings shares.
“The net effect is the company’s overall indebtedness level and its finance costs and interest payments are expected to be lower immediately following the listing than they were prior to completion of the property businesses combination, primarily because of the settlements of the amounts due to the non-property businesses,” said CK Property’s IPO prospectus which was released on Friday.
The gearing ratio of CK Property fell to 34.2 per cent in 2014 from 41.9 per cent in 2013, according to its prospectus. CK Property’s turnover soared 41.3 per cent to HK$24.04 billion in 2014, while its net profit rose 20.6 per cent to HK$17.07 billion.
By the end of 2014, CK Property held 1.6 million square metres of rental properties, 15.8 million sq metres of development land bank including 14.5 million sq metres in the mainland and more than 14,600 hotel rooms, and also managed 21 million sq m of properties in Hong Kong and the mainland.
CK Property is one of the top three property developers in Hong Kong in terms of property development revenue, with a market share of 9.4 per cent, according to its IPO prospectus.
Analysts estimated the valuation of CK Property could reach HK$172.2 billion.
