(Yicai) Nov. 16 -- Pre-initial public offering investors in Zhuhai Wanda Commercial Management Group, a shopping mall operator linked with Chinese real estate giant Dalian Wanda Group, have rejected its proposal to delay repayment of CNY30 billion (USD4.1 billion) by year-end if it fails to go public in Hong Kong before the year is out, according to a media report.

Following bumpy initial talks, Zhuhai Wanda Commercial will present the backers with more options, The Paper reported today, citing people familiar with the matter.

In July 2021, Zhuhai Wanda Commercial signed a bet-on agreement with 22 investors, including Country Garden Holdings, Citic Capital, Ant Group, and Tencent. They injected CNY38 billion for about 21 percent of the firm’s equity.

In return, Zhuhai Wanda Commercial promised cumulative net profit of at least CNY22 billion in the three years from 2021 to 2023 and should the company be unable to complete its IPO this year, it would repurchase shares worth CNY30 billion from the 22 investors.

Zhuhai Wanda Commercial, which was spun off from Dalian Wanda Commercial Management Group in March 2021, filed for an IPO with the Hong Kong Stock Exchange four times between October 2021 and June 2023. The most recent application will expire next month.

In June, Dalian Wanda Commercial axed a plan to issue CNY6 billion (USD826.9 million) of bonds due to unfavorable market conditions. Following that, almost CNY2 billion of its equity was frozen, which along with Zhuhai Wanda Commercial’s prolonged inability to go public, have put immense pressure on Wanda Group's liquidity.

As of Dec. 31, 2022, Zhuhai Wanda Commercial operated 472 commercial malls and its net profit reached CNY7.5 billion on revenue of CNY27.1 billion. 

Editor: Emmi Laine