[photopress:Peace_Hotel_Shanghai.jpg,full,alignright]According to some reports the Jinjiang International Hotels Development, the mainland’s largest hotel operator is planning an IPO on the Hong Kong Stock Exchange to raise $300 million. BNP Paribas and UBS as underwriters of the IPO and the firm is planning for negotiations with investors next week.
However other reports have a senior executive saying, ‘We hope our shares can be floated in Hong Kong before the end of the year.’
There was, indeed, talk of a delay earlier because its IPO has not yet received permission from the China Securities Regulatory Commission but that, according to some reports,seems to have been cleared up.
Jinjiang International manages about 250 four and five-star hotels in Beijing, Shanghai, Zhejiang and Jiangsu. Its best-known property is Shanghai’s Peace Hotel. It also runs the Jinjiang Inn chain of three-star hotels spread across 10 provinces.
The company plans to open 16 new hotels and inns by the end of 2008. The company also plans to invest part of the money it raises through its year-end IPO to open hotels in Europe, Russia, Japan and the US in 2007.
An anonymous executive is reports to state the company would open two hotels in Russia, one in Moscow, the other in St Petersburg, next year. She said, ‘We are also exploring other overseas markets, including the US, Europe and Japan, but Russia should be our first destination because the two budget hotels planned for that country are part of an investment project sponsored by the Shanghai city government.’
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