Under the background of mainland property management enterprises intensive listing in Hong Kong, Financial Street property has been warmly welcomed by investors and has been greatly oversubscribed. On July 3, the results of the Financial Street property disclosure and IPO showed that about 1.316 billion shares were subscribed for in the Hong Kong public offering, which is about 146.22 times of the total 9 million shares initially available for subscription under the Hong Kong public offering. Under the clawback mechanism, a total of 36 million offering shares have been reallocated from the international offering to the public offering, resulting in an increase in the total public offering to 45 million shares, equivalent to 50% of the total number of shares offered (prior to the exercise of any over allotment rights).
The international offering has also been substantially oversubscribed, equivalent to about 20 times the total number of shares initially available for subscription under the international offering. The final number of shares offered under the international offering was 45 million, equivalent to 50% of the total number of shares offered. In addition, the company also issued up to 13.5 million over allotment shares (equivalent to 15% of the total number of shares initially available for subscription and issuance under the global offering).
The reporter of Securities Daily learned that more than 140 orders were received in the international placement part of the IPO, which was supported by global well-known long-term funds, domestic well-known funds, hedge funds, enterprises and high net worth customers.
Four institutional cornerstone investors have been introduced to Finance Street property, with a total subscription of US $21 million (about HK $163 million), accounting for 24.65% of the global offering. Among them, UBS asset management, Xize investment management, j-stone and detri respectively subscribed for us $6 million, US $5 million, US $5 million and US $5 million respectively, accounting for about 24.65% of the shares offered at the middle price, with a six-month lock up period. It is understood that the chairman of Xize investment management group is held by Liu Yang, who is known as female stock god.
Property management industry integration expected to improve
According to the prospectus, Financial Street property is a subordinate enterprise of Financial Street Holding Group, and the major shareholder of Financial Street Holding Group is SASAC of Xicheng District, Beijing.
According to the report of the China Securities Regulatory Commission, in terms of comprehensive strength, Financial Street property ranked 16th among Chinas top 100 property service enterprises in 2020. As of December 2019, the area under management and construction of the companys office building is about 6.4 million square meters, ranking the fourth among the top 100 property service enterprises in Beijing, Tianjin and Hebei in 2020, accounting for 32.1% of the total construction area under management.
As of 2019, Financial Street property has provided property management and related services for a total of 144 property projects across the country, involving a total construction area of about 19.9 million square meters, of which about 40% are located in Beijing, and about 63% are from Beijing based on income. The company mainly focuses on non residential project management, accounting for about 75.9% of the revenue in 2019, of which 51.1% of the companys revenue is from office buildings. The income from projects affiliated to the Financial Street Group accounted for 66.4%. The company mainly provides basic property management, living services, rental services and catering services. From 2017 to 2019, the companys operating revenue was RMB 760 million, RMB 880 million and RMB 1 billion respectively, of which the revenue from commercial property was 71.5%, 68.7% and 66.1% respectively.
Anxin international pointed out in the research report that it is expected that the merger and acquisition of the industry will accelerate, the property management industry is repeating the development process of the real estate industry, and the concentration degree will be continuously improved, and the industry integration will be accelerated. There are not many commercial property management companies listed in Hong Kong. With the background of state-owned enterprises of Financial Street property, there will be a certain amount of funds to pursue after listing.
Source of this article: Yang Qian, editor in charge of Securities Daily_ NF4425