China Resources arm eyes US$1b IPO

CR Longdation, a property management arm of state-owned conglomerate China Resources Holdings, is reportedly planning an initial public offering in Hong Kong as a real estate investment trust to raise up to US$1 billion (HK$7.8 billion), according to the International Financing Review.

The company has selected banks including Citi, China International Capital Corporation (3908) and JP Morgan as sponsors for the IPO, the report said.

The size of the IPO will be at least US$500 million and the company expects the IPO to take place next year, it said.

CR Longdation's businesses include property leasing in Hong Kong, Thailand, and mainland China but the proposed REIT will only include its office and retail assets in Hong Kong, which were valued at US$20 billion, the report added.

This came as China Resources Cement (1313) said it expects its net profit for the first nine months to drop up to 63 percent from a year ago due to the lower selling prices and sales this year, as well as a one-off gain recognized during the corresponding period last year.

In other news, Chinese pantry staple food Shiyue Daotian (9676) rose 22.7 percent in its trading debut yesterday, suggesting a paper gain of HK$1,044 per board lot of 300 shares. Another debutant Luyuan (2451), an electric two-wheeled vehicle provider in China, also edged up 0.95 percent.