XIAMEN FIT IMPORT & EXPORT CO., LTD.
China Properties eyes US$108 mln from relisting
click rate:2350 issue time:2007-03-10 08:12
Feb. 16, 2007 (China Knowledge) – China Properties Group on Thursday announced that it will launch a US$208 million IPO, which consists partly of assets privatised by Chairman Wong Sai Chung in 2003.


But many investors were skeptical about the long-term intentions of the controlling shareholder, as the previous buyout was done at a sizeable discount to net asset value. Such limited the total demand and forced the deal to be priced close to the bottom of the indicated range, or at a discount of more than 40% to the estimated post-money NAV.


The deal comprised 450 million new shares, which were offered at HK$3.50 to HK$4.70 each and were priced at HK$3.60 for a total deal size of HK$1.62 billion (US$208 million). Trading debut is scheduled for February 23.


The 90% institutional tranche attracted approximately US$1 billion of demand, or about 5.3 times the US$187 million worth of shares on offer, while the retail portion of the deal was about 10 times covered, a source familiar with the deal told FinanceAsia.