The most intensive year for mainland real estate companies was in 2007 and 2009. About 12 real estate companies were listed on the market, which caused market concern. Companies such as Evergrande, Country Garden, Longhu, Jinmao and Rongsheng were listed during this period.
Editor’s note: This article is from WeChat public account “Hexun Real Estate” (ID: hexunhouse)< /a>, author Liu Baodan.
Although the property market continues to be sluggish, the pace of listing small and medium-sized housing companies in Hong Kong is accelerating.
On October 29, two IPO news conferences were held in Hong Kong. One was Xinli Holdings (Group) Co., Ltd. (hereinafter referred to as “Xinli Holdings”) and the other was China Tianbao Group Development Co., Ltd. (below) Referred to as “Tianbao Group”, the former listing date is expected to be November 15th, and the price range per share is 3.30-4.25 Hong Kong dollars; the latter listing date is expected to be November 11, the price range per share is 2.39-3.10 Hong Kong dollars.
The two housing companies are regional housing companies, Xinli Holdings is from Jiangxi, and Tianbao Group is from Hebei. They have maintained a high growth rate in the past few years. In the eyes of the industry, the competition in the real estate industry is becoming increasingly fierce. Small and medium-sized housing enterprises are generally facing greater pressure to survive. Listing is undoubtedly a good opportunity for small and medium-sized housing enterprises to achieve future development.
Two housing companies will be officially listed on the Hong Kong Stock Exchange
In terms of scale, Xinli Holdings is much larger than Tianbao Group.
According to the data of the China Real Estate Index System, Xinli Real Estate ranked No. 31 in the top 100 Chinese real estate developers in 2019 according to the comprehensive real estate development capability. According to the China Real Estate Association, Xinli Real Estate is in the real estate development enterprise 500. Strongest ranked 39th. According to Kerr’s statistics, in the first nine months of this year, Xinli Holdings’ sales were 71 billion yuan. The Tianbao Group is outside the ranking of the top 100 real estate enterprises, and its name is unknown.
According to the media, according to Xinli Holdings’ IPO plan, if the over-allotment option is not exercised and the issue price is set at a median price of HK$3.78, the amount raised by Xinli Holdings is approximately HK$1.87 billion. For the use of funds, Xinli Holdings said that 60% of the funds raised are used for the development and construction of existing projects, including the construction cost of the property development project, that is, 20% for the Chengdu Shuangliu 92 mu project and 30% for the 120 mu of Wuxi Binhu and 10% is used for the development of 102 mu of Hefei new station; at the same time, 30% of the funds will be used to repay part of the existing interest-bearing loans for project development, and the remaining 10% for general working capital.
As a large-scale integrated property development company, Xinli Holdings focuses on the development of residential and commercial properties and is a leader in residential property development in Jiangxi Province. Third party agency