[photopress:property_harbin.jpg,full,alignright]Glorious Property Holdings, a real estate developer in nine Chinese cities, may raise as much as $1.1 billion in a Hong Kong initial public offering, according to an e-mail sent to fund managers. But note that property IPOs are being canceled left, right and center so do not bet money on it going ahead.
The builder of apartments, townhouses, retail properties, offices and hotels is looking for sale of 2.25 billion shares, or a 30% stake. About 77% of that will be new shares sold by the company.
If successful, the sale could be the largest Hong Kong property IPO since the $1.9 billion offering by Soho China in September 2007, according to data compiled by Bloomberg.
At least three (my counting is five) property companies have delayed or canceled Hong Kong IPOs this year as stock markets slumped and on concern China’s government may curb the real estate industry so it happens when it happens.
Glorious Property has projects in Shanghai, Tianjin, Beijing, Wuxi, Suzhou, Nantong, Hefei, Shenyang and Harbin (seen in our illustration looking quite amazing during the annual ice festival) in eastern China. It has 15.9 million square meters (171 million square feet) of yet to be developed land in the country.
The company may begin taking orders from fund managers for the IPO in the next day or so. Stock trading is scheduled to start July 15. Deutsche Bank AG and JPMorgan Chase & Co. are managing the sale.
As an informed guess the writer believes that Glorious cannot, perhaps, get quite as much money as it wants/needs. So it will, possibly, settle for less.