A-Living Services Co. Ltd. priced its planned IPO below the midpoint of an indicative price range at HK$12.30 per share, despite oversubscriptions in the international component of the offering, the Nikkei Asian Review reported, citing an unnamed source familiar with the matter.
The source told the publication's Nikkei Markets that the Chinese property management service provider's international offering of 300,000,000 H shares, which forms part of the IPO along with an offering in Hong Kong of 33,334,000 H shares, was "oversubscribed multiple times."
In January, the company set an indicative price range of between HK$10.80 per share and HK$14.20 per share for its initial public offering, with hopes of raising as much as HK$18.93 billion. A majority of the proceeds from the IPO will be directed toward investment and acquisitions, while the rest will be used for the development of the company's service platform and for general working capital, the Feb. 5 report noted.
A-Living, which is principally involved in property management, sales, inspection, advertising and tourism services, is being spun off from Agile Group Holdings Ltd. The book building process for its IPO will run until Feb. 9, the same day it is expected to debut on the Hong Kong stock exchange.
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.
