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Hangzhou-based builder ZhongAn Group’s property management unit moves closer to Hong Kong listing, sets price of IPO shares

  • Hangzhou-based company set its offer price at HK$1.18 apiece and is expected to start trading on Tuesday
  • ZhongAn Intelligent Living postponed the listing in January due to market conditions

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Exchange Square, home of the Hong Kong stock exchange, in the city’s Central business district. Photo: Yik Yeung-man
Zhang Shidongin Shanghai
ZhongAn Intelligent Living Service, a spun-off unit of Hangzhou-based property developer ZhongAn Group, has finalised the price for its initial public offering (IPO) shares, moving a step closer to completing a listing in Hong Kong that has been in the works since 2021.
The Hangzhou-based company set its offer price at HK$1.18 apiece and is expected to start trading in the city on Tuesday, according to an exchange filing made to the Hong Kong stock exchange on Monday. Of the 126.7 million shares on offer, 114 million will be sold to global investors and the remainder will be reserved for local investors in Hong Kong, according to earlier statements. The underwriters have the right to exercise an overallotment option that will allow ZhongAn Intelligent Living to sell an additional 19 million shares, depending on market demand, the latest statement said.
Hong Kong’s IPO market has been picking up this month, with a rebound in stocks reviving investors’ appetite for new shares. China’s largest online fitness platform Keep and Star Plus Legend Holdings, the diet drink maker founded by the mother of pop star Jay Chou, both debuted in the city last week. The Hang Seng Index has risen about 3 per cent in July and is heading for a second straight month of gains, after Beijing’s shift to a more supportive stance towards technology platforms and on hopes that more growth stabilising measures are in the offing.
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ZhongAn Intelligent Living has revived the listing after a postponement in January due to market conditions. Its first attempt to list in the city dates back to 2021 and this is the fourth time that the company has submitted a listing prospectus to the Hong Kong exchange.

The company plans to raise HK$110 million (US$14.1 million) from the stock offering and use 55 per cent of the proceeds to acquire small and medium-sized property management firms, according to its latest prospectus. The remainder will be used to upgrade information technology facilities and improve service offerings, it said.

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The gross floor area under management at ZhongAn Intelligent Living totalled 12.8 million square metres at the end of last year, representing a compound annual growth rate of 9 per cent since 2020, the prospectus said. It was ranked 40th last year among China’s property management firms, with a 0.04 per cent of the market share, according to the data by property industry consulting firm China Index Academy.

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