China Evergrande’s property management arm launching US$2 billion IPO as developer seeks to pare massive debt
- Evergrande Property Services’ IPO could raise as much as HK$18.17 billion if overallotment option is exercised
- Evergrande, China’s largest and most indebted developer, has total debt amounting to US$122.4 billion
Evergrande Property Services, a unit of mainland China’s largest and most indebted developer China Evergrande Group, is looking to raise up to HK$15.8 billion (US$2.04 billion) from an initial public offering in Hong Kong next week, a move that will allow its parent to pare back its massive debt.
The mainland property management services provider is offering 1.62 billion shares at an indicative price range of HK$8.5 and HK$9.75, equally splitting them between existing and newly issued shares, it said in an online media briefing on Sunday.
If the offer is priced at the top end and the overallotment option, known as greenshoe, is exercised, the company could raise as much as HK$18.17 billion.
The company is offering 10 per cent of its global shares sale to retail investors in Hong Kong and 90 per cent through international placements from Monday until noon on Thursday when the offer is expected to be priced. The stock is set to start trading on the Hong Kong stock exchange on December 2.
The developer sold about 582 billion yuan worth of properties up to October, achieving 91 per cent of its full-year sales target of 650 billion yuan.