Fang's Subsidiary to Launch Trading, Complete Spin-off on June 11
China Index got approval to list on the Nasdaq Global Market under the symbol “CIH."
Fang Holdings Ltd. (NYSE: SFUN) announced Friday that its spin-off, China Index Holdings Ltd. (CIH), is expected to begin trading today on the Nasdaq Global Market on a "when-issued" basis, with the "regular-way" trading to commence after the separation on June 11.
Fang, an online real estate portal in China, previously announced the spin-off of its subsidiary last month, filing to trade up to $32,037 worth of CIH's American depositary shares and distribute 72.5 million of its shares to Fang's shareholders in the form of a dividend. According to the statement, the dividend will be distributed to investors who owned Fang shares as of May 28.
Today, Fang said it expects the separation and distribution to launch June 10 and continue until the expected completion on June 11.
In response to the news, shares in Fang were trading up 2 percent intraday Friday, at $1.17 apiece.
According to the statement in May, 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.
CIH got the official approval from Nasdaq for listing on the Nasdaq Global Market under the symbol "CIH" this Wednesday.
The company has maintained profitability since 2016, according to its regulatory filings. Last year, its revenue reached $61 million, up 32 percent from the corresponding period of 2017 and its income was at $24 million, up 29 percent from 2017.
CIH's main business covers 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.