(Yicai Global) April 26 -- Zhuhai Wanda Commercial Management Group, the property services unit of Chinese real estate giant Dalian Wanda Group, plans to refile as soon as possible for an initial public offering in Hong Kong after its third and most recent application lapsed.

Wanda Commercial Management will submit updated IPO application materials at the earliest, it told Yicai Global after the Hong Kong Stock Exchange said on its website yesterday that the company’s last listing prospectus had become invalid.

According to the first prospectus filed in October 2021, if Wanda Commercial Management fails to go public by the end of this year, it will be obliged to buy back shares worth about CNY30 billion (USD4.4 billion) from its pre-IPO investors, including Country Garden Holdings, Citic Capital, Ant Group, Tencent Holdings, and Pacific Alliance Group, 

In the first prospectus, Wanda Commercial Management also guaranteed that it would make a net profit of CNY5.2 billion in 2021 and net profits deducting non-recurring profit and loss of CNY7.4 billion last year and CNY9.5 billion this year. If it fails, its parent company Dalian Wanda Commercial Properties will have to give up some shares for free or pay compensation in cash.

The market is concerned that the company does not have enough money to pay its debts. A USD400 million dollar bond of Wanda Commercial Management will expire in July, and some CNY15.4 billion worth of domestic debt has already matured.

Wanda Commercial Management reported a 7.4 jump in revenue to CNY55.3 billion in 2022 from the previous year. The occupancy rate of its commercial properties was 98.7 percent last year, with 55 new Wanda Plazas opened in the period. At the end of last yea, the number of visitors to Wanda Plazas reached 79 percent of the 2019 pre-pandemic level.

Editor: Futura Costaglione