HONG KONG :China Vanke Co Ltd is seeking to raise around $500 million via a new share placement in Hong Kong, according to term sheets seen by Reuters, in a first major test of offshore investor appetite for property shares this year.
State-backed property developer Vanke is selling 300 million H-shares, accounting for 15.7 per cent of the existing H-shares, at HK$12.93 to HK$13.20 apiece, according to the documents.
The company plans to use 60 per cent of the proceeds for debt repayment and the rest for replenishing working capital.
China’s property sector has since mid-2021 been grappling with a severe liquidity crisis, with many developers defaulting on or delaying debt payments as they struggle to sell apartments and raise funds.
Vanke’s offering price range of the placement represents a 5 per cent to 7 per cent discount to Wednesday’s close of HK$13.90.
CLSA is the coordinator and a joint placing agent for the share placement.
(Editing by Louise Heavens and Shounak Dasgupta)