Dalian Wanda seeks 20b yuan ahead of IPO

Business | Reuters and Avery Chen 22 Apr 2021

Chinese conglomerate Dalian Wanda Group aims to raise 20 billion yuan (HK$23.9 billion) for its commercial property management business before listing the unit in Hong Kong by year-end, sources said.

Wanda is targeting primarily private equity investors for Wanda Light Asset Commercial Management, aiming for a valuation of 200 billion yuan, said the people.

Several prospective investors tapped by Wanda and its financial advisors, however, have found that valuation "too high," one of the people said.

The firm, owned by Wang Jianlin - once China's richest person - aims to complete the fundraising by July and file for an initial public offering in September, they said.

Chinese developers and real estate managers raised a combined record US$10.4 billion (HK$81.12 billion) in Hong Kong listings last year, showed data from Refinitiv.

If Wanda sold a 10 percent stake, as is typical for a sizeable IPO, a 200 billion yuan valuation would make the float Hong Kong's biggest for a property manager at least since 2016, surpassing the HK$6.92 billion November float of Evergrande Property Services (6666).

Meanwhile, Shanghai-listed China Tourism Group Duty Free Corp is preparing a secondary listing in Hong Kong, the company said yesterday.

The duty-free shop operator reported a net profit of 2.85 billion yuan for the first quarter, compared with a loss of 21.86 million yuan a year ago, as its business was disrupted by Covid-19 last year. The company's valuation reached 572.06 billion yuan.

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