Zhuhai Wanda files for Hong Kong IPOwritten by Bella Palmer
Wanda Group said the proceeds from this IPO will be used to expand the number of malls it manages, and improve its existing facilities and data-processing capabilities
Zhuhai Wanda Commercial Management Group, the property servicing arm of Dalian Wanda Group, has filed for a Hong Kong stock exchange listing and, according to Chinese media reports, is seeking to raise between $3 billion and $4 billion.
Filing documents posted by the stock exchange don’t mention funding or market valuation targets, but do reveal the company, which manages 380 malls in mainland China, covering a total area of 54.2 million square metres and with an average occupancy rate (from 2018 to 2020) of 98.8 percent, raised about $6 billion in July and August at a valuation of $28 billion.
The company also said in its filing that profit in 2020 fell 8.8 percent year-on-year to 1.1 billion yuan ($172 million).
Zhuhai Wanda is 69.99 percent owned by Dalian Wanda Commercial Management Group (DWCM), a Chinese conglomerate founded and controlled by billionaire, Wang Jianlin, who was once China’s richest man. Mr. Wang has amassed billions of dollars of investments in property and entertainment assets. He has kept a low profile since 2017, when overseas investments by ultra-wealthy Chinese, including Wang, came under increased scrutiny by domestic regulators keen to stem capital outflows.
The planned listing also comes as rising debt defaults at Chinese residential developers have cast a pall over China’s housing market. In late September, residential property giant China Evergrande Group missed some interest payments to dollar bondholders, and smaller rival Fantasia Holdings Group Co. defaulted on debt shortly after.
Zhuhai Wanda counts Hong Kong-based private equity group PAG, Tencent Holdings Ltd. , and property developer Country Garden Holdings Co. among its investors, Thursday’s filing showed. Wanda Group said the proceeds from this IPO will be used to expand the number of malls it manages, and improve its existing facilities and data-processing capabilities.
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