Sunac China Holdings 1918 IPO

[winston]

Sunac is eyeing up to HK$2.98 billion by floating 750 million shares at HK$3.18 to HK$3.98 apiece. It is the developer's fourth attempt to list in Hong Kong, having scrapped its third bid in December.

"I am confident Sunac will make it this time," said Sun Hongbin, chairman and chief executive. "But if we fail, we will return home, learn the lesson and come back [to Hong Kong] again."

Bank of China Group Investment, Huaxi International (HK) Trading & Investments and Farmac Holdings have signed up as cornerstone investors.

Beijing's sovereign wealth fund China Investment Corp agreed to buy US$25 million (HK$195 million) worth of shares.

"Our management team has made all the mistakes that a Chinese real-estate firm could ever make over the years," said Sun. "Every lesson we learned should help us make right choices in the future."

Source: The Standard HK

[winston]

not vested

Sunac (1918 HK)

Home sales saw positive growth since the beginning of the year and we expect sales will stay resilient from June to October.

We prefer quality developers with huge exposure in core cities acquired at reasonable prices. Sunac reported flat 2015 results with an in-line core net profit.

The weak margins in 2015 have largely been priced in and we expect a bottoming out in 2016.

The successful switch to landbanking in core tier-2 cities from tier-1 cities was a smart move and could have Sunac emerging as a major beneficiary in this round of policy loosening and market rebound.

Abundant resources will help Sunac achieve its new sales target.

Source: UOBKH

[behappyalways]

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