Chinese Property Sector's Latecomer Radiance Eyes Hong Kong IPO
Sun Mengfan
/SOURCE : yicai
Chinese Property Sector's Latecomer Radiance Eyes Hong Kong IPO

(Yicai Global) March 26 -- China's Radiance Property Holdings, one of the mainland's two unlisted property developers in the top 40 based on sales, is looking to go public in Hong Kong. 

Radiance Property would use the proceeds toward funding its ongoing projects and to repay some of its debts, according to its filing published by the Hong Kong Exchanges and Clearing yesterday. 

A successful listing would help the company access more affordable funding channels, insiders told Yicai Global. An initial public offering would also standardize the firm's operations toward healthy and scientific development, an insider added. Founder Lin Dingqiang currently holds 65 percent of the firm's equity and his wife Lin Fengying has the remainder.

Founded in 1996, Radiance Property ranked 40th among China's real estate firms last year, according to CRIC Research Center. Its sales climbed by 19 percent that year to CNY88.9 billion (USD12.5 billion) from 2018, its filing shows. Its net profit rose by 17 percent to CNY2.7 billion (USD381 million).

Last year, Radiance Property's debt-to-net assets ratio was 170 percent as its loans and bonds totaled CNY42.8 billion by the end of December. The firm has engaged in cautious investment strategies over the past years, a senior executive told Chinese media in 2016.

The company has projects in 30 Chinese cities, including Beijing, Shanghai, and Chongqing. By the end of last year, its land reserves amounted to 26.7 million square meters. 

ABCI Capital, CITIC CLSA Capital Markets, and Haitong International Capital would act as some of the IPO's underwriters. 

Editor: Emmi Laine

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Keywords: Property , IPO , Hong Kong