China Vanke unit set to raise HK$5.75b in Hong Kong IPO: sources

DEVELOPER China Vanke’s property services arm Onewo is set to raise HK$5.75 billion (S$103.8 million) after pricing its shares at HK$49.35 each in its Hong Kong IPO, according to 2 sources with direct knowledge of the matter.

The sources could not be named as the information was not yet made public. Onewo declined to comment.

Onewo, which is a unit of China’s second largest developer by sales, sold 116.74 million shares in the deal. The shares represent 10 per cent of Onewo’s share capital

At HK$49.35, the price is at the middle of the HK$47.1 to HK$52.7 apiece range set when the deal was launched on Monday (Sep 19).

Vanke, which has weathered China’s property sector crisis in better shape than most if its rivals, owns 62.9 per cent of Onewo and is its biggest customer, regulatory filings showed.

Onewo is 1 of the largest Hong Kong IPO’s in 2022 so far, with the value of deals in the Asian financial hub down nearly 90 per cent due to a year of Sino-US tension and a tightening regulatory environment in China.

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The largest, Chinese electric vehicle maker Leapmotor Technology, is due to price shares on Friday as it attempts to raise US$1 billion. REUTERS