(Yicai Global) July 19 -- Real estate behemoth China Vanke has received regulatory approval to spin off its property management services unit for an initial public offering in Hong Kong.

The China Securities and Regulatory Commission accepted Onewo Space-Tech Service’s April 1 application to issue 180 million shares on the Hong Kong Stock Exchange, its Shenzhen-based parent company said in a statement yesterday. It still has to pass an HKEX hearing.

Media reports recently said Vanke was mulling spinning off its the unit for a Hong Kong listing as early as September, aiming to raise up to USD2 billion. Onewo, which changed its name from Vanke Property Development in October 2020, has not commented on the reports during its pre-IPO quiet period.

Founded in 1990, Onewo positions itself as a provider of ‘space-technology services,’ using tech to make property and facility management more efficient, as well as integrated smart city services.

Revenue at the company jumped 30.6 percent to CNY23.7 billion (USD 3.5 billion) last year, according to its IPO prospectus. Gross profit was CNY4 billion (USD592.7 million), up 19.5 percent, while net profit was CNY1.7 billion, a 7.2 percent gain.

At the end of last year, Onewo had nearly 4,400 projects across China, managing 780 million square meters of property, an increase of nearly 36 percent from the same period a year earlier.

Shares of Vanke [SHE: 000002] fell 0.6 percent today to close at CNY17.80 (USD2.64). The stock is down almost 10 percent so far the year.

Editor: Futura Costaglione