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Agile Group's A-Living Services expects HK$3.92B from IPO

Agile Group Holdings Ltd.'s subsidiary, A-Living Services Co. Ltd., is expecting net proceeds of nearly HK$3.92 billion from its proposed IPO in Hong Kong, with price set at HK$12.30 per share.

The company earmarked about HK$2.55 billion, or 65% of the estimated proceeds excluding the IPO's overallotment option, for selective strategic investment and acquisition opportunities. A-Living Services also allotted HK$391.9 million of the expected amount for the improvement of its one-stop service platform; HK$587.9 million for the development of its management digitalization, service specialization, procedure standardization and operation automation; and another HK$391.9 million for working capital and general corporate purposes.

In its pricing statement, the Chinese property management service provider said that both the Hong Kong and international components of its initial public offering were oversubscribed. The final allocation for the proposed spinoff's offering in Hong Kong is now 100,000,500 shares following a roughly 20.13x oversubscription, while for the "significantly oversubscribed" international offering, 233,333,500 shares were allotted. The distribution of shares for the IPO is subject to an overallotment option of up to 50,000,000 shares.

The company's pricing statement confirms an earlier report that the IPO, despite being oversubscribed, was priced below the midpoint of the HK$10.80-per-share to HK$14.20-per-share indicative price range that was set in January. Its revised expected net proceeds were also significantly lower than its initial target of up to HK$18.93 billion.

A-Living Services will make its debut on the Hong Kong stock exchange Feb. 9, according to a previous announcement.

The Hong Kong and Shanghai Banking Corp. and Huatai Financial Holdings (Hong Kong) Ltd. are acting as joint sponsors of the offering, and together with Morgan Stanley also function as joint global coordinators, joint book runners and joint lead managers. BNP Paribas, ABC International, CCB International, ICBC and China Securities International are also serving as joint book runners and joint lead managers of the IPO.