Fang Announces Spin-off of China Index, Seeking a Nasdaq Listing

Fang said it plans to distribute in the form of dividend all the shares of China Index to its shareholders and list its ordinary shares represented by American depositary shares on the Nasdaq Stock Market.

Belinda Zhou
    May 13, 2019 6:03 PM  PT
Fang Announces Spin-off of China Index, Seeking a Nasdaq Listing
author: Belinda Zhou   

Fang Holdings Ltd. (NYSE: SFUN) has announced the separation of its subsidiary, China Index Holdings Ltd., and the proposed listing of its shares on the Nasdaq Stock Market. 

The Beijing-based company, a real estate portal, said in a statement Monday that its board has approved the separation, which has been under consideration for some time. All the issued and outstanding shares of China Index (CIH) held by Fang would be distributed to Fang shareholders, while CIH's American depositary shares in the amount of $32,037 would be traded publicly.

In a regulatory filing, China Index (CIH) said its spinoff from the parent company would allow it to focus on information and analytics services and develop commercial property-related business.

The company has been profitable for the three consecutive years since 2016. Last year, its revenue reached $61 million, up 32 percent year-over-year, while income was at $24 million, up 29 percent from 2017.

CIH generates revenue from its information and analytics services. as well as marketplace services. Citing research by Frost & Sullivan, it said, as of Dec. 31, it ran the largest real estate information and analytics service platform in terms of geographical coverage and data volume 

The company said it had $23.9 million in cash and cash equivalents as of the end of 2018.

According to today's statement, shareholders will receive a dividend distribution of one Class A ordinary share for every one Fang ordinary share, while holders of ADSs will receive one dividend for every five ADSs.

Shares in Fang, which will continue to trade its shares on the New York Stock Exchange upon CIH's proposed entry on the Nasdaq, closed down more than 2 percent Monday, at $1.26 apiece.