China Vanke’s Onewo slides in first day of Hong Kong trading

ONEWO, the property management unit of real estate developer China Vanke, slumped in its trading debut in Hong Kong.

The shares declined 7.6 per cent to HK$45.60. They were sold at HK$49.35 each, the mid-point of the marketed range. The initial public offering (IPO) raised about about HK$5.8 billion (S$1.1 billion).

Onewo’s drop in its first day of trade in Hong Kong gives an indication of how investors are responding to new share sales by firms tied to Chinese developers. The nation’s real-estate sector has been struggling to emerge from a long-simmering crisis, as Covid lockdowns hurt home purchases and increased pressure on cash-strapped builders.

Onewo offers residential property services, commercial and urban space integrated services and so-called remote space-tech solutions, incorporating artificial intelligence and business process outsourcing.

Shenzhen-based Vanke, which owned about 63 per cent of the unit before the IPO, stood out last month as the first top-tier China property developer to report stronger earnings, defying a downturn that’s engulfed peers once seen as relatively safe.

Onewo’s IPO drew 6 cornerstone investors that together were willing to snap up about US$276 million worth of shares based on the mid-point of the range. They include UBS Group’s asset management arm and Singapore’s Temasek Holdings.

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