by winston » Mon Nov 09, 2009 4:06 pm
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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