[photopress:china_apartments.jpg,full,alignright]Analysts believe a Chinese real estate services company may beat its own hopes of raising $226.8 million in its initial public offering in the United States. Shanghai-based E-House (China) Holdings is the thirteenth Chinese company to launch an IPO this year on either the New York Stock Exchange or the Nasdaq. It has filed to sell 16.8 million American Depositary Shares on the New York Stock Exchange.
The anticipated price range is $11.50 to $13.50 per common share.
The company is a primarily a residential real estate brokerage with 1,800 employees in 20 cities that also provides consulting and information services.
E-House is the market leader and the first Chinese real estate services company to make its debut on U.S. exchanges. That makes it a natural choice for investors interested in profiting from the breakneck pace of economic growth in China, whose housing market is the polar opposite of the the slumping one in the United States.
Chinese real estate prices nationwide have risen 26% this year on average and over 30% in major cities.
Francis Gaskins, president of independent research firm IPOdesktop.com, said, ‘E-House produces good income statements. It’s an easy, visible way to play growth in China in an easily understandable market.’
Analysts generally believe that given the appeal of Chinese real estate, E-House should price at the top of its range and could easily trade at a premium on its scheduled IPO date which is August 7.