[photopress:fineland_group.jpg,full,alignright]First the news was property developer Longfor Properties would probably start a management roadshow in July to market a $1 billion initial public offering in Hong Kong. This despite market weakness and delayed IPOs on the same market.
Citi and Morgan Stanley were listed as the joint global coordinators of the offering and the Chongqing-based developer had also appointed Merrill Lynch and UBS to help market and distribute the issue.
Longfor, a high-end residential and commercial property developer, operates in Beijing, Shanghai and Xian, with revenue reaching RMB10 billion ($1.45 billion) last year.
Almost immediately that news item was published there was a follow-up which suggested that Longfor Properties and Fineland Group, two mainland-based property developers, were considering delaying their Hong Kong initial public offerings (IPOs) following the recent weak debut of Central China Real Estate.
Longfor had planned to raise a billion while Guangzhou-based Fineland Group planned to raise up to $200 million. Now it looks as if both are to be delayed.
The reason is the state of the market where Central China Real Estate ended nearly 3% below its IPO price on its trading debut.
For the property market this does not augur well. It suggests that IPOs would best wait for a strong market upturn.
The illustration comes from the Corporate Council Members of the Guangdong Human Resource Management Association of which Fineland is a member. Finding a precise and apposite image is dashed difficult.
Sources: Reuters and Interactive Investor