Chinese developer Yuzhou Property has secured $30 million worth of cornerstone investment in its planned US$400 million Hong Kong initial public offering.
Hong Kong-listed Shimao Property has pledged to buy US$10 million worth of shares in the Xiamen-based developer, and Xiamen C&D Real Estate will buy US$20 million worth.
Cornerstone investors are institutional investors that are guaranteed allocations in an IPO. This is not always seen as being totally to the advantage of later, private, investors.
Yuzhou Property has a land bank of more than 3.5 million square meters, of which nearly half is in Xiamen, southeast China.
The Wall Street Journal said the deal is being organized by Morgan Stanley. The technical expression used in the industry is that Morgan Stanley is the bookrunner.
Perhaps something a little less emotive could be substituted for bookrunner. Doing a runner in English slang in some areas suggests activity which is anti-social.