New York-listed SouFun latest mainland firm to seek a listing back home
Higher valuations and more active trading the main lures
More overseas-listed mainland firms are pondering a return to the Shanghai or Shenzhen stock exchanges in search of higher valuations and more active trading, with New York-listed SouFun the latest to seek a back-door listing at home.
On Wednesday, the firm released more details about the proposed acquisition of a majority stake in Shanghai-listed storage-battery manufacturer Chongqing Wanli New Energy through an asset and share swap.
Analysts see the move as a back-door listing by Soufun, China’s biggest real estate website provider, following in the footsteps of other mainland players,
Such companies will get a higher valuation on the mainland, where they have established household names
“Such companies will get a higher valuation on the mainland, where they have established household names,” said Kenny Tang Sing-hing, chief executive at Jun Yang Securities.
They had previously gone aboard to tap the international capital market to raise funds at lower cost, he said.
“Today, the A-share market is also serving as an active fundraising channel for listed firms such as those issuing yuan-denominated bonds to finance future expansion,” Tang said.
David Hong Shing-kei, head of research at China Real Estate Information, said he expected to see more mainland companies shift their listings to Shanghai or Shenzhen.
“Their return may also be triggered by the thin trading in overseas stock exchanges,” he said.
