Fantasia Holdings 1777

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Shenzhen-based Fantasia Holdings which is tapping the market for HK$3.9 billion, achieved 80 percent of its sales target this year, said chairman Pan Jun.

He said the firm has 10 residential projects on sale and 12 under construction.

Source: The Standard HK

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Fantasia Group has lured China Poly Group as a cornerstone investor with a HK$100 million subscription.

Chinese Estates (0127) chairman Joseph Lau Luen-hung, C C Land (1224) chairman Cheung Chung-kiu and "king of toys" Francis Choi Chi-ming may also subscribe for a total HK$500 million worth of shares. Fantasia will start its roadshow next Tuesday.

Source: The Standard HK

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Fantasia Group, meanwhile, attracted six cornerstone investors who subscribed for HK$500 million worth of shares. The developer is set to list on November 25.

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DJ UPDATE: Fantasia Seeks Up To US$476 Mln In HK IPO - Sources

HONG KONG (Dow Jones)--Chinese property developer Fantasia Holdings Group Co. (1777.HK) is seeking to raise up to US$476 million in a Hong Kong initial public offering, people familiar with the situation said Monday.

In the base deal, the Shenzhen-based company, which focuses on boutique high-end flats, is selling 1.46 billion shares in a HK$1.75-HK$2.20 range to raise up to US$414 million, the people said. It also has the option to raise the deal size by 15% to raise a total of US$476 million, they added.

The indicative price range translates to a valuation of 5.25-6.60 times the company's estimated 2010 net profit of CNY1.43 billion, or a discount of 54.3%-62.8% to its net asset value, one person said.

The price/earnings valuation is in line with those of other recent IPOs in the property sector. Mingfa Group (International) Co., which is now marketing its scaled-back US$336 million offering, is selling shares in a forward multiple of 4.8-6.8 times, and Evergrande Real Estate Group Ltd. closed its US$722 million IPO last month by selling shares at a 5.5 times multiple.

Six cornerstone investors have committed to buy US$63 million worth of Fantasia shares, including a wholly owned unit of China Poly Group Corp. and Joseph Lau, chairman of Chinese Estates (Holdings) Ltd. (0127.HK), the person said.

Fantasia will use half of the proceeds to increase its land reserves, and the remainder to finance existing projects and replenish working capital, he said.

Bookbuilding for Fantasia's IPO starts Monday, and the company is scheduled to list its shares on the Hong Kong stock exchange Nov. 25, the people said.

BOC International Holdings Ltd., Citic Securities International, Deutsche Bank AG (DB) and Goldman Sachs Group Inc. (GS) are joint bookrunners of the deal, they said.

Source: Amy Or, Dow Jones Newswires

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Mainland developer Fantasia plans to float 1.458 billion shares at HK$1.75 to HK$2.20 each. It has lured six cornerstone investors who have subscribed for HK$490 million worth of shares. China Poly Group will buy HK$100 million of shares and Rouy Chai International Investment HK$78 million.

Among cornerstone investors are Chinese Estates Group (0127) chairman Joseph Lau Luen-hung and C C Land (1224) chairman Cheung Chung-kiu. They will each put in US$10 million (HK$78 million). Planning to subscribe are Atlantis Investment Management chairwoman Liu Yang, who said she will buy at least US$20 million of shares, and New World Development (0017) chairman Cheng Yu-tung who will inject "HK$30 million or so."

Asked about the large number of mainland realty listings, Fantasia executive director Zeng Jie said: "Fantasia focuses on long-term development, it will not consider whether there are plenty of real estate offerings or whether the stock market is lackluster."

Source: The Standard HK

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From Phillips:-

Valuation

We believed that the monetary policy of China in 2010 will be tightened and interest rate will be increased, this results in the negative impact on property markets, though luxury property market is expected to have greater price stability relative to other types of properties. While the rally of resource price next year would increase the cost of company`s projects.

Compare to peers who have listed recently, Glorious Property (845.HK), Central China (832.HK) and PowerLong (1238.HK) that are trading at 4.89x, 7.56x, and 6.26x times 2009 PE respectively.

Since the expected gross profit margin of 2009 and 2010, which are 37.5% and 35.1% respectively, are lower than peers and net profit are highly fluctuated as shown in financial information below; and target customers involve high growth small and medium enterprises which are susceptible to macro-economic conditions, we set 2009 and 2010 PE to be 5.8x and 4.65x respectively.

The estimated EPS of 2009 and 2010 EPS of the company are HK$ 0.736 and HK$ 0.773 assuming average property price is more or less than same in 2010, our 12-month target price is HK$3.59 implying 63% upside based on the upper limit of offering price ranging from $1.75-$2.2. Rating: Speculative Subscribe.

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Fantasia Holdings' public offering was 8.94 times oversubscribed when it opened its retail book yesterday with HK$3.19 billion worth of margin financing orders.

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Fantasia's retail portion was 58.91 times oversubscribed with margin financing order of HK$19.23 billion.

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Applied.

The public offering of Fantasia was more than 150 times oversubscribed, freezing HK$48.4 billion, sources said.

Asked whether he bought Fantasia to "give face" to executive director Zeng Jie - the niece of Zeng Qinghong, the former vice president of China - Lee Shau Kee said: "No, it's for fun as well. But it is worth a bet, like gambling money. Hopefully I can make some money. I really mean it." Lee said he has not received any discounted shares

Source: The Standard HK

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Applied.

Fantasia raises $410 mln in Hong Kong IPO -source

HONG KONG, Nov 18 (Reuters) - Chinese property developer Fantasia Holdings Group Co Ltd raised US$410 million when it priced its Hong Kong initial public offering near the top of an indicated range, a source close to the deal said on Wednesday.

The company sold 1.458 billion shares, or 30 percent of its enlarged share capital, at HK$2.18 each, compared with a range of HK$1.75 to HK$2.20, the source said.

Among the offered shares, 83 percent are news shares while remaining 17 percent are existing shares.

Its Hong Kong public offering portion was about 155 times oversubscribed, the source said.

Fantasia's trading debut is set for Nov. 25 under the symbol "1777" (1777.HK).

Deutsche Bank (DBKGn.DE), CITIC Securities, BOC International, Goldman Sachs (GS.N) and ICBC International are handling the deal.