KE Holdings Sets Price Range for Thursday IPO Worth Up to $2 Billion

KE Holdings’ IPO will be the largest Chinese listing in New York this year.
Anna VodAug 11,2020,06:55

KE Holdings Inc. has set the price range for its upsized initial public offering, scheduled for this week.

 China’s largest real estate platform will sell 106 million American depositary shares at between $17 to $19 apiece, according to its latest filing.

At the top of the expected range, KE will raise $2 billion on the New York Stock Exchange under the symbol "BEKE” on Thursday, August 13.

The operator of housing sales platform Beike also said in its amended prospectus that a number of existing shareholders, including Tencent, Hillhouse, Sequoia Capital, and Fidelity, have proposed to acquire an aggregate of $800 million of the shares offered.

Goldman Sachs (Asia) LLC, Morgan Stanley & Co. LLC, China Renaissance Securities (Hong Kong), and J.P. Morgan Securities LLC are lead underwriters in the listing. Other underwriters are CICC, UBS Securities, CLSA, Credit Suisse Securities (USA), and CMB International Capital.

KE Holdings said it intends to use the proceeds from its sale for research and development, specifically, to boost “infrastructure technologies including big data, artificial intelligence and virtual reality.” It also seeks to expand its new home transaction services, diversify its services, and expand geographically.

The IPO target was upsized from the initial placeholder of $1 billion, as predicted by Renaissance Capital.

Renaissance senior strategist Matthew Kennedy told CapitalWatch last week, “This is a large company in an important area that is well-integrated with China's larger economy, and I believe its reception will reveal how the market views investing in China, to some extent.”

SoftBank- and Tencent-backed KE Holdings operates China's largest housing services platform Beike and real estate brokerage Lianjia. The housing market remains a top driver of the economy in China. In 2019, Beike facilitated over 2.2 million housing transactions and landed a gross transaction value (GTV) of 2,128 billion yuan ($300.5 billion), according to its preliminary prospectus.

KE Holdings’ IPO will be the largest Chinese listing in New York this year.

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