(Yicai Global) Sept. 30 -- Shares of China Evergrande Group soared today after China's biggest real estate developer's unit Evergrande Property Services Group submitted its prospectus in Hong Kong.

Evergrande's stock price [HKG:3333] jumped 14 percent to HKD18.82 (USD2.40) in the afternoon after touching as high as HKD19.46, a more than one-month high.

A listing on the bourse's main board would help China's third-biggest property management firm expand and improve its efficiency while providing the company's shareholders returns, according to the filing published yesterday. The Shenzhen-based parent didn't disclose any pricing nor timing details.

Another reason for the stock price jump may be Evergrande's announcement yesterday that it has reached agreements with several strategic investors of Evergrande Real Estate Group about giving up on their right to demand the unit to compensate for its delayed restructuring and listing plans.

In late July, Evergrande said that it will spin out EPS for an initial public offering. Last month, it attracted HKD23.5 billion (USD3 billion) worth of investment for the unit, selling a 28 percent stake. The parent indirectly holds the remainder of equity so EPS would still be controlled by Evergrande after its listing.

EPS is No. 3 in terms of total revenue, gross margin, net profit, and contracted area on the list of Chinese property management companies, the parent said, citing a report from the China Index Academy.

The IPO-hopeful's compound annual growth rate of net profit was nearly 200 percent between 2017 to 2019, the highest amongst the domestic sector's 20 biggest players, the prospectus added.

In the first half, EPS made CNY4.6 billion (USD675.2 million) in revenue and CNY1.1 billion in net profit. More than 60 percent of its revenue came from property management services, followed by value-added services to non-property owners, which includes construction site and sales office management, as well as community value-added services.

Editor: Emmi Laine