{"id":520201,"date":"2020-11-30T14:16:02","date_gmt":"2020-11-30T14:16:02","guid":{"rendered":"https:\/\/www.abnewswire.com\/pressreleases\/?p=520201"},"modified":"2020-11-30T14:16:02","modified_gmt":"2020-11-30T14:16:02","slug":"evergrande-property-raises-over-18-billion-in-hong-kong-ipo","status":"publish","type":"post","link":"https:\/\/www.abnewswire.com\/pressreleases\/evergrande-property-raises-over-18-billion-in-hong-kong-ipo_520201.html","title":{"rendered":"Evergrande Property Raises Over $1.8 Billion in Hong Kong IPO"},"content":{"rendered":"
\"Evergrande<\/a><\/div>\n

Real estate giant, Evergrande Property, meets lukewarm reception from the capital market as the company raises $1.8 billion in IPO<\/em><\/p>\n

Evergrande Property Services Group was able to raise about $1.8 billion in their Hong Kong IPO, as the stocks were priced at the lower end of expectations due to worries about its debt-laden parent company.<\/p>\n

“Evergrande has too much debt…the listing of the property services unit is to save the parent; Evergrande will continue to sell shares (in the unit) after the listing to cut debt<\/em>,” said Francis Lun, chief executive of GEO Securities.<\/p>\n

The offering is coming after a run of setbacks for China Evergrande Group, the second-biggestproperty developer in the country. The company is also reputed to be heavily indebted. It includes a secondary share sale in October, raising only half of its initial target and the ditching of the planned injection of most of its property assets into a Shenzhen company via a backdoor listing.<\/p>\n

Despite the seemingly below par performance of the IPO, the price represents a 5% increase from a $3 billion private funding round done in August, with shares issued at HK$8.375.Evergrande Property is currently valued at HK$95.06 billion ($12.3 billion) at HK$8.80 per share, with 50% of the funds raised going to the parent firm. There is also a greenshoe option that could take the size of the stake sold from 15% to 17% of exercised.<\/p>\n

It is an open secret that company has been scrambling for cash following Beijing’s clampdown on “excessive borrowing in the real estate development sector,” with a consideration of new debt-ratio caps. However, analysts on the credit and sell-side have allayed fears of any possible default to the company’s various fund-raising options.<\/p>\n

Evergrande has also been able to reach agreements with most investors to keep the equity in property assets as opposed to demanding repayment. This will go a long way in relieving the company’s debt burden.<\/p>\n

Some market analysts opine that the IPO got a relatively cool reception due to a slew of property services-related listings in Hong Kong and the view that the sector is currently overvalued.<\/p>\n

The likes of Shimao Services Holdings Ltd and other major players in the property market have also priced towards the middle or upper end of ranges.<\/p>\n

“So Evergrande has to face reality and set a lower price in the hope of getting a higher trading price after IPO<\/em>,” said UOB Kay Hian director Steven Leung.<\/p>\n

For more information IPO news, please visit – https:\/\/cedargrove-investments.com\/<\/a>.<\/p>\n

About Cedar Grove Investments<\/strong><\/p>\n

Cedar Grove Investments is a bespoke financial Services company with a wide range of clients offering exceptional portfolio management. Headquartered in Hong Kong, the company delivers financial management services to clients worldwide, with a team of industry experts that boasts of a combined experience of over 100 years.<\/p>\n

Media Contact<\/span>
Company Name:<\/strong> Cedar Grove Investments<\/a>
Contact Person:<\/strong> Media Relations
Email:<\/strong> Send Email<\/a>
Phone:<\/strong> +852 580 36230
Address:<\/strong>24 FL, Admiralty Centre – Tower 1, 18 Harcourt Road, Admiralty
Country:<\/strong> HongKong
Website:<\/strong> https:\/\/cedargrove-investments.com<\/a><\/p>\n

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Real estate giant, Evergrande Property, meets lukewarm reception from the capital market as the company raises $1.8 billion in IPO Evergrande Property Services Group was able to raise about $1.8 billion in their Hong Kong IPO, as the stocks were … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[401,425,417,419,412],"tags":[],"class_list":["post-520201","post","type-post","status-publish","format-standard","hentry","category-Business","category-Finance","category-Marketing-Sales","category-Media-Communications","category-News-Current-Affairs"],"_links":{"self":[{"href":"https:\/\/www.abnewswire.com\/pressreleases\/wp-json\/wp\/v2\/posts\/520201","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.abnewswire.com\/pressreleases\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.abnewswire.com\/pressreleases\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.abnewswire.com\/pressreleases\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.abnewswire.com\/pressreleases\/wp-json\/wp\/v2\/comments?post=520201"}],"version-history":[{"count":0,"href":"https:\/\/www.abnewswire.com\/pressreleases\/wp-json\/wp\/v2\/posts\/520201\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.abnewswire.com\/pressreleases\/wp-json\/wp\/v2\/media?parent=520201"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.abnewswire.com\/pressreleases\/wp-json\/wp\/v2\/categories?post=520201"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.abnewswire.com\/pressreleases\/wp-json\/wp\/v2\/tags?post=520201"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}