Chinese Mainland-focused property developer Shui On Land said that it plans to raise up to HK$6.2 billion (US$797 million) in a listing in Hong Kong, just three months after it abandoned an earlier share sale due to deteriorating market conditions.
Shui On is selling 1.16 billion shares at between HK$4.80 and HK$5.35 apiece to raise the capital to fund its developments in the mainland, the company said.
The trading of shares is expected to start on October 4.
The company expects a net income of 982 million yuan this year, down from the 1.26 billion yuan forecast before Shui On Land scrapped the share sale in June.
China's central government continued its efforts to cool the property market over the past few months by introducing a string of land, credit and tax policies. It also restricted overseas investment in the domestic property market.
Vincent Lo, chairman of Shui On Land, said the company plans to gradually increase the percentage of investment properties that can yield long-term rental income instead of one-off gains from sales.
Among the company's current portfolio of land on the mainland, 57 percent is for residential use, 26 percent is office space, 13 percent is retail and the rest is used for hotels, serviced apartments, schools and clubs.
In other developments since the previous plan for a share sale, Shui On Land sold a 19.8 percent stake in its Chongqing Tiandi development in China's southwest to Hong Kong's Edward Wong Group and Shun Hing Holdings Co for 1 billion yuan, generating a profit of 560 million yuan.
The company signed an agreement with the city government of Kunming, the capital of Yunnan province in China's southwest in July, for a possible development to be used for residential, business and cultural purposes.
Winning a government tender for land for the project would increase Shui On Land's total holdings by 2.5 million square meters to 10.6 million square meters.
Shui On Land also plans to repay early an 875 million yuan loan it received indirectly from Shanghai's pension fund.
Source:佚名