|Bid||15.700 x 0|
|Ask||15.740 x 0|
|Day's Range||15.700 - 16.340|
|52 Week Range||9.760 - 28.000|
|Beta (5Y Monthly)||1.64|
|PE Ratio (TTM)||10.68|
|Earnings Date||Aug 31, 2020|
|Forward Dividend & Yield||0.71 (4.39%)|
|Ex-Dividend Date||Jul 08, 2020|
|1y Target Est||28.00|
(Bloomberg) -- China Evergrande Group’s property management arm has raised about HK$14.3 billion ($1.84 billion) after pricing shares in its Hong Kong initial public offering at HK$8.80 each, according to people familiar with the matter.Evergrande Property Services Group Ltd. sold 1.62 billion shares priced below the mid-point of a marketed range, the people said, asking not to be identified as the matter is private. The price range was set at HK$8.50 to HK$9.75 apiece on Sunday.The shares are comprised of 50% new stock as well as 50% existing shares, meaning Evergrande will receive half of the proceeds from offering its holdings of the unit.A representative for Evergrande didn’t immediately respond to requests for comment.The cash raised will help debt-laden Evergrande pare back a $120 billion debt pile under a more stringent oversight of developers’ fundraising activities by Chinese regulators. The nation’s housing watchdog and central bank have asked some of the biggest developers including Evergrande to report their financing, debt and business data on the 15th of every month, Bloomberg News has reported.The offering includes a potential additional over-allotment option, known as a greenshoe, of 243.2 million shares. If the greenshoe is fully exercised to meet demand at HK$8.80 per share, proceeds could rise to HK$16.4 billion.The IPO is part of a trend of China’s developers spinning off management units in Hong Kong at a record pace. About $4.69 billion has been raised through property management IPOs this year, overtaking 2019’s record $3.26 billion, data compiled by Bloomberg show.Huatai International Ltd., UBS Group AG, ABC International, CCB International, Citic Securities Co. and Haitong International are joint sponsors of the offering.Shares of Evergrande Property Services are set to begin trading Dec. 2.(Updates with pricing confirmation in first and second paragraphs.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The initial public offerings of Evergrande Property Services and JD Health, both due to kick off this week, look set to push the total funds raised on the Hong Kong stock exchange to a 10-year high.Deal arrangers are rushing to launch share sales in the remaining few weeks of 2020, a year characterised by fewer but more sizeable deals as investors chase Chinese issuers operating in the only country in the world forecast to post growth this year amid the global pandemic."While revenues at our China companies have been growing over each of the last six to seven quarters, companies with European and US operations had seen revenues drop by over 50 per cent since the second quarter," said Eric Xin, managing partner at private equity firm Citic Capital Partners, at an industry forum last week. "I don't see the bottom of it."Get the latest insights and analysis from our Global Impact newsletter on the big stories originating in China.If they hit their targets, the IPOs of both Evergrande Property Services and JD Health would be in the top five biggest deals of 2020.So far this year the total funds raised via Hong Kong IPOs stand at US$39.2 billion from 125 deals, up 70 per cent from the US$23 billion generated by 136 flotations during the same period a year ago, data from Refinitiv shows. The two forthcoming deals combined are to take the total past the US$40.4 billion raised last year, and would make 2020 the highest year since the US$57.5 billion raised in 2010.Evergrande Property Services, the property management arm of the heavily indebted China Evergrande, is marketing its Hong Kong IPO at HK$8.5 to HK$9.75 per share in a deal that could see it raise up to US$2 billion, according to its prospectus filed on Monday.It is selling a total of 1.62 billion shares, and the price range is equivalent to a forward 2021 price-to-earnings multiple of 20.5 times to 23.5 times.For the six months to the end of June this year, Evergrande Property Services' net profit totalled 1.15 billion yuan (US$180 million), more than double the 407.3 million yuan it made in the same period a year ago.Evergrande Property Services will join a dozen other Chinese property servicing companies that have completed IPOs in Hong Kong this year, raising US$3.5 billion so far.Its debt-laden parent, China Evergrande Group, which owed 835.5 billion yuan (US$1.26 billion) as of June 30, said in September that the spin-off and separate listing will enable the servicing unit to fund its own operations through the capital markets and reduce its reliance on the group.Joint sponsors of the IPO include Huatai International, UBS, ABC International, CCB International, Citic Securities and Haitong International.The Guangzhou-based company plans to use the proceeds for pursuing acquisition and investment opportunities, upgrading its IT and for general working capital purposes.JD Health, the health care arm of e-commerce giant JD.com, is looking to raise between US$3.5 billion and US$4 billion, according to people familiar with the transaction.The online and offline health care firm is seeking a valuation of US$29 billion as it goes public in Hong Kong, which would be a significant appreciation over the US$12 billion it was last valued at, in August, by investors. It is marketing the shares at HK$62.8 to HK$70.58 per share. A listing on the main board is scheduled for December 8, the people said.The biggest online health care platform and retail pharmacy by revenue, whose platform grossed 10.8 billion yuan in 2019 according to Frost & Sullivan, will kick off its public offering in Hong Kong over the next two weeks.Joint sponsors for the deal include Bank of America, Haitong International and UBS, while China Renaissance is the financial adviser.The firm also provides online consultations and family doctor services. JD.com, listed both in the US and Hong Kong, owns about 78 per cent of JD Health, according to its preliminary LPO filing to the exchange.JD Health plans to use the IPO proceeds for business expansion, research and development, and potential investment and acquisition opportunities.In the first half of the year, JD Health recorded a net loss of 5.4 billion yuan, reversing a profit of 236.3 million yuan during the same period a year ago.The top three IPOs of this year in Hong Kong have been those of JD Health's parent, JD.com, NetEase and Yum China, which each raised over US$2 billion.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2020 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.
(Bloomberg) -- China Evergrande Group and its property management arm are seeking to raise as much as HK$15.8 billion ($2.04 billion) in a Hong Kong initial public offering of the unit, Evergrande Property Services Group Ltd. said Sunday.The sale of 1.62 billion shares comprises 50% new stock and 50% so-called sale shares, with the price range set at HK$8.50 to HK$9.75 apiece. The offering size could be increased as much as 15% to meet demand if an over-allotment option is exercised.The Shenzhen-based company said it’s secured 23 cornerstone investors who agreed to subscribe for 789.5 million shares, a roughly 7% stake of Evergrande Property Services after the IPO.Those investors include SenseTime Group, a subsidiary of China Gas Holdings Ltd., and China Merchant Buyout Fund, according to terms obtained by Bloomberg News. The firms did not respond to requests for comment outside business hours.The cash raised would help Evergrande pare back a $120 billion debt pile under a more stringent oversight of developers’ fundraising activities by Chinese regulators. The nation’s housing watchdog and central bank have asked some of the biggest developers including Evergrande to report their financing, debt and business data on the 15th of every month, Bloomberg News reported.Evergrande owns about 72% of the property services arm, according to the preliminary prospectus. Evergrande Property Services said in a statement Sunday that 65% of net proceeds will go toward acquisitions and investment, with the rest into areas including technology upgrades and talent recruitment.The IPO is part of a trend of China’s developers spinning off management units in Hong Kong at a record pace. About $4.59 billion has been raised through property management IPOs this year, overtaking 2019’s record $3.26 billion, data compiled by Bloomberg show.Huatai International Ltd., UBS Group AG, ABC International, CCB International, Citic Securities Co. and Haitong International are joint sponsors of the offering.In August, Evergrande raised $3 billion by selling a stake in its property management arm to investors including Tencent Holdings Ltd. Companies linked to Citic Capital Holdings, the wife of billionaire mogul Joseph Lau and the family investment arm of New World Development Co. billionaire Henry Cheng, are also among the pre-IPO investors.Evergrande Property Services plans to market the offering from Nov. 23-26, with pricing and allocation expected to be determined on Nov. 26. Shares are set to begin trading Dec. 2.(Updates cornerstone attribution in fourth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.