Sunac Services Holdings Ltd. is aiming to raise HK$8.73 billion from its IPO on the Hong Kong stock exchange.
The Sunac China Holdings Ltd. spinoff is offering 690 million shares at an indicative per-share price between HK$10.55 and HK$12.65. Of the shares reserved for the sale, 48.3 million shares are earmarked for Hong Kong offering and 641.7 million shares are allocated for international investors.
Assuming an offering price of HK$11.60 per share, Sunac Services will net HK$7.81 billion from its IPO. The company will use the net proceeds from the listing to finance investment and acquisition opportunities, upgrade its systems for smart management services and for the development of smart communities, among others.
The initial offering is subject to an overallotment option that will lift the total share sale number to 793.5 million, as well as deliver additional capital to the company, according to its prospectus. The final price for the IPO is expected to be determined Nov. 12 for an expected Nov. 19 debut on the bourse.
HSBC Corporate Finance (Hong Kong) Ltd. and Morgan Stanley Asia Ltd. are the joint sponsors for the offering. The joint global coordinators are The Hongkong and Shanghai Banking Corp. Ltd., Morgan Stanley Asia, China International Capital Corp. Hong Kong Securities Ltd., Citigroup Global Markets Asia Ltd. and Credit Suisse (Hong Kong) Ltd.
HSBC, Morgan Stanley Asia, Morgan Stanley & Co. International PLC, CICC, Citigroup Global Markets Asia, Citigroup Global Markets Ltd., Credit Suisse, ABCI Securities Co. Ltd., BOCI Asia Ltd., CMB International Capital Ltd., Huatai Financial Holdings (Hong Kong) Ltd. and ICBC International Securities Ltd. are the joint lead managers and bookrunners.