Times Property launches offering

Times Property, a Guangdong-based developer, plans to raise up to HK$1.94 billion through an initial public offering that kicks off today.

The developer will issue 431 million shares at a price ranging between HK$3.20 and HK$4.50 each, with trading due to start on Hong Kong's main board on December 11.

The net proceeds of the offering, after the public offering's fees and expenses, are estimated at HK$1.55 billion if the shares are priced at HK$3.85.

"About 33.3 per cent of the net proceeds will be used for settling part of the outstanding instalments under the restructuring deed," company vice-president Li Qiang said yesterday, while about 56.7 per cent would be used for financing new and existing projects and the remaining 10 per cent for working capital.

The company's gearing ratio reached 163.6 per cent at the end of June and Li said he hoped the ratio would improve after the listing.

The developer is focused on residential development in Guangdong province.