Chinese property developer Dalian Wanda trades flat in HK debut
Shares in Chinese real estate developer Dalian Wanda Commercial Properties Co traded flat in Hong Kong's biggest listing since 2010 as concerns about debt and a high valuation offset optimism over a rebound in China's property market.
Stock in the world's second-largest developer of shopping malls and office buildings was unchanged in the early morning from the initial public offering price of HK$48.00, while the benchmark Hang Seng index gained 0.1 percent.
Dalian Wanda raised about $3.7 billion after pricing the deal, Hong Kong's biggest IPO since October 2010, near the top of a HK$41.80 to HK$49.60 per share marketing range.
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With about 179.7 billion yuan ($29 billion) in bond and loan debt amassed during a decade-long expansion drive, Dalian Wanda is well placed to benefit from lower interest rates in China and a rebound in its property market, brokerage Sun Hung Kai Financial said in a Dec. 10 research report.
Still, the company scaled back it ambitions in the IPO, having first planned to raise as much as $6 billion, as some investors were put off by the scale of its debt, analysts said.
Dalian Wanda's listing is the largest in Hong Kong since AIA Group's $20.5 billion IPO just over four years ago and rounds off a hectic final quarter of the year for listings in the Asia-Pacific region.
It follows a $3.6 billion Hong Kong offering earlier this month by China's largest nuclear power producer, CGN Power Co, and the $4.9 billion IPO by Australian state-owned health insurer Medibank Private in November.