What’s new: China’s leading securities regulator has accepted an application from Dalian Wanda Group’s commercial property management unit for public listing in Hong Kong, a key step towards the company’s long-awaited share sale plan .
Acceptance will allow Zhuhai Wanda Commercial Management Group Co. Ltd. submit their application for listing on the Hong Kong Stock Exchange. The company has yet to respond to requests from the China Securities Regulatory Commission for the final green light before attending a listing hearing on the Hong Kong Stock Exchange, the final step towards a start.
Zhuhai Wanda Commercial Management reported first-half sales of 22.8 billion yuan ($ 3.5 billion), up from 17 billion yuan a year ago. Net profit rose 14% to 9.1 billion yuan.
The background: Zhuhai Wanda Commercial Management is Wanda’s light asset unit established in March by makeover its property management assets with a strategic investment of 3 billion yuan from the Zhuhai government.
The unit manages more than 300 Wanda Plazas across the country and secured approximately $ 6 billion in pre-IPO funding in September from investors including private equity fund PAG, Tencent Holdings and Ant Group.
Wanda has sought to market its commercial property management business in the domestic market since 2015, but has made no progress in the face of Beijing’s tight control over financing the real estate sector. Wanda took of the mainland listing application in August and said he would consider an overseas offer after the asset restructuring.
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