Lukewarm response as SF REIT's IPO opens

Business | Avery Chen and Reuters 6 May 2021

SF Real Estate Investment Trust, a spinoff of China's courier giant SF Holdings, was met with a lukewarm response upon its Hong Kong initial public offering.

Mom-and-pop investors placed HK$407 million worth of orders through margin financing, meaning its retail portion was oversubscribed only 0.52 times, data from 11 local brokers showed.

The company is seeking to raise up to HK$2.68 billion from the IPO and is issuing 520 million units at an indicative price range of between HK$4.68 and HK$5.16 apiece. The minimum investment is HK$5,212 per 1,000 units. It is scheduled to start trading on the mainboard on May 17.

Meanwhile, Central China Management Company, the project management arm of Central China Real Estate (0832), will start pre-marketing for its Hong Kong IPO next week, looking to raise between US$100 million (HK$780 million) and US$150 million.

The company, which mainly operates in Henan, made a net proft of 681.47 million yuan (HK$817.77 million) last year.

Separately, Krispy Kreme has filed with US regulators for an IPO, a move that would result in the doughnut chain's return to the stock market five years after it was taken private.

The company first went public in 2000, but had to file for bankruptcy following investigations into its accounting practices and a drop in sales at some of its franchisees. It was bought by privately owned JAB Holding in a US$1.35 billion deal in 2016.

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