Dalian Wanda's Zhuhai-Backed Property Management Arm Eyes Second Chance on HKEX
Dou Shicong
DATE:  Oct 22 2021
/ SOURCE:  Yicai
Dalian Wanda's Zhuhai-Backed Property Management Arm Eyes Second Chance on HKEX Dalian Wanda's Zhuhai-Backed Property Management Arm Eyes Second Chance on HKEX

(Yicai Global) Oct. 22 -- Chinese real estate giant Dalian Wanda Group's reorganized property management unit has filed its application to get listed in Hong Kong again after delisting from the exchange in 2016.

Zhuhai Wanda Commercial Management Group counts Tencent Holdings, Ant Group, and various other internet giants among its cornerstone investors, according to the Guangdong province-based firm's prospectus filed yesterday. It didn't disclose more financial details about the expected issuance.

The proceeds of the initial public offering will be spent partly on investments and acquisitions, said the firm. The company aims to expand its scale of assets under management, upgrade its hardware and software, and enhance its data prowess, it added.

The path to a new flotation has been complex. The first plan was to list on the mainland. But Beijing-based parent Dalian Wanda withdrew the application in March to reorganize its property management business under a new entity, Zhuhai Wanda, to bring in state capital of the southern city. Zhuhai invested CNY3 billion (USD469.3 million) in the newly established firm but its shareholding ratio has not been disclosed.

The property management arm's first IPO on the Hong Kong Stock Exchange could be considered unsuccessful as Dalian Wanda Commercial Properties got delisted in September 2016 after less than two years of its IPO.

This time around, cornerstone investors are expected to have nearly 21.2 percent of the real estate firm's equity. Two affiliates of internet giant Tencent Holdings, namely Huang River Investment and Golden Computer Technology, jointly hold a bit more than a 0.8 percent stake in the firm.

Moreover, two affiliates of fintech titan Ant Group, including Accelerator I and Yunxin Venture Capital, jointly have about a 1.4 percent stake in Zhuhai Wanda, according to the prospectus. Finally, Country Garden Property Services HK Holding holds about 1.8 percent of its equity.

Dalian Wanda's unit Dalian Wanda Commercial Management Group directly owns a nearly 70-percent stake in the IPO-hopeful, and indirectly holds a further 8.8 percent via various subsidiaries. The parent's Chairman Wang Jianlin controls almost 52.7 percent of the total equity, directly and indirectly.

Amid new listing plans, the company has been shifting its focus onto Wanda Plaza malls. As of June 30, Zhuhai Wanda operated 380 Wanda Plazas in more than 200 Chinese cities, with a floor area of 54.2 million square meters.

Unloading some subsidiaries has caused the firm to report poor net gains this year. In the first half, Zhuhai Wanda's net profit decreased by 20 percent to CNY655.5 million (USD102.5 million) from a year ago. Revenue was 41 percent up at CNY10.6 billion (USD1.7 billion). But core profit, when excluding investment gains and losses, almost tripled to CNY2.1 billion.

Editor: Emmi Laine, Xiao Yi

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Keywords:   Zhuhai Wanda,IPO,Tencent,Ant Group