- Abu Dhabi Will Aid Debt-Fraught Dubai 'Case by Case'
- Banks With The Biggest Exposure to The UAE
- Dubai's Debt Woes Signal New Era for Creditors
- Next Week: Cash In Now Or Wait For A Santa Rally?
- Dubai Stock Selloff May Bring Buying Opportunity
- Longer Lines, Fuller Carts This Black Friday
- Big US Banks May Be Forced to Raise Capital: Bove
- Bank of America Amends Pay for Senior Executives
- Tiger Woods Out of Hospital After Accident
- U.S. Stocks Fall on Dubai Worries
- Black Friday at Best Buy
- Strategists on Dubai: Avoid 'Rash Moves' Now
- Longer Lines, Fuller Carts This Black Friday
- Dubai Stock Market Fear Has 'Legs': Dennis Gartman
- Obama's Emission Reduction Pledge Paints Future for Autos
- Is Super Bowl Halftime Act Too Old?
- Surprising Options Trades in TiVo Shares
- EA Sports Hopes to Pump Up Sales Through Pop-Up Locations
MOST SHARED
- Tiger Woods Out of Hospital After Accident
- The Good Entrepreneur Winner
- Gold Will Collapse Like Oil Did in 2008: Charts
- Abu Dhabi Will Aid Debt-Fraught Dubai 'Case by Case'
- CNBC VIDEO: Warren Buffett & Bill Gates 'Walk & Talk' at Columbia University
- Next Week: Cash In Now Or Wait For A Santa Rally?
- Halftime Report: Dubai - First Ripple Of Larger Crisis?
Text Size 
Shares of Chinese property company Evergrande Real Estate Group surged 34.2 percent in their $729 million Hong Kong market debut on Thursday.
The Guangzhou-based property developer's closing share price was HK$4.70, compared with a Hong Kong IPO price of HK$3.50 each, which had been at the mid-point of the indicative range.
 |
Several recent mainland property IPOs have met with cool receptions as the broader market comes off highs and investors weigh a flood of similar offerings.
Shenzhen-based Excellence Real Estate Group Ltd last week shelved plans for an IPO in Hong Kong of up to $1 billion, blaming market conditions, while Mingfa Group also scaled down its fundraising plans.
However, Evergrande attracted strong demand because of its low valuations. It drew orders for about 10 times the number of shares earmarked for institutional investors, while the Hong Kong retail tranche generated orders for about 46 times the shares initially on offer.
Based on Evergrande's offering price, which represents a price-to-earning multiple of 5.8 times estimated 2010 earnings by its IPO underwriters.
By comparison, Agile Property trades at 12 times 2010 earnings, while China Overseas Land trades at 16 times.
Evergrande raised $729 million, well below the $2.1 billion offer it attempted last year. Earlier, reports said the company hoped the IPO would fetch more than $1 billion.
BofA-Merrill Lynch and Goldman Sachs are joint sponsors of the deal, and together with Credit Suisse and BOC International are joint global coordinators and joint bookrunners.
Evergrande has the largest land reserves among mainland property developers, with a total gross floor area (GFA) of about 51.2 million square meters, and with an average cost of about 445 yuan ($65.19) per square meter.
At the end of September, Evergrande had completed development of a total GFA of about 4.1 million square meters. Properties under development and held for future development had a total GFA of 51.2 million square meters.
- These four sectors will be the next to lead the market.
- Zhu Zhu Pets are this year's must-have toy, fetching $40 or more on eBay.
- From the why-didn’t-I-think-of-that file, we present Jason Sadler, a man whose job is wearing T-shirts.
- It may be the most unusual guide to business you'll read.
- Shopping for a gadget hound? The choices can be baffling. Here are a few that should be a hit.
- "The Who" will be the halftime act for Super Bowl XLIV on Feb. 7 in Miami. Is the NFL behind the times?
Data is a real-time snapshot *Data is delayed at least 15 minutes