China’s property developer Radiance Holding received a green light from the Hong Kong Stock Exchange hearing board and will launch its IPO subscription period to the general public starting Thursday.
The company expects to price at HK$3.5 to HK$4.5 per share and will be ready to debut on October 29. The minimum purchase amount is HK$4,545 for 1,000 shares.
Radiance Holdings said it plans to use the IPO proceeds to fund its ongoing projects and to repay some of existing trust loans.
ABCI Capital, CITIC CLSA Capital Markets, and Haitong International Capital are joint underwriters on this deal.
According to its prospectus, the company, as of July 31, 2020, had 160 property development projects at various stages of development. These projects had a total of 29.1 million square metres of gross floor area attributable to the company, of which about 93.3% are located in second-tier cities or core third-tier cities in China.
According to filings, total revenue was 15,971.2 million yuan and 25,963.1 million yuan in 2018 and 2019, representing a CAGR of 48.5%. It recorded a profit of 2,299.9 million yuan and 2,690 million yuan in 2018 and 2019, indicating a CAGR of 10%.
Affected by the pandemic, the company experienced some delays in construction completion and property delivery but overall the impact is controllable. Radiance has yet experience any significant shortage of construction materials or labors that materially interrupted the construction or sales of properties, according to the company.
The Beijing-based developer said it ranked 36th in terms of comprehensive strengths among “2020 China’s Top 50 Real Estate Developers” and was ranked in “China’s Top 10 Real Estate Developers of Comprehensive Strength” by the China Real Estate Association and the China Real Estate Appraisal Center of E-house China Research Institute in 2020.