China Vanke spin-off seeks $780mn in Hong Kong’s biggest IPO this year
China Vanke plans to raise up to $784mn in Hong Kong from the spin-off of its property management unit, which is set to test global investor appetite for real estate-related listings after a string of high-profile defaults in the sector this year.Onewo, a subsidiary of Vanke, said it would raise up to HK$6.2bn ($784mn) from an initial public offering of about 117mn shares priced at a range of HK$47.10 to HK$52.70 each, according to a filing with the Hong Kong exchange.
The decision to list Onewo comes as Chinese authorities step up measures to support the country’s beleaguered property sector, which accounts for about a third of total economic output, as growth in the world’s second-largest economy slows.
Demand for housing in China has crumbled after a series of defaults by developers stoked a crisis of confidence among homebuyers. Last week, state banks cut deposit rates for the first time since 2015 in a bid to boost flagging growth.