By Anniek Bao
The real estate management arm of China Vanke Co. has applied for an IPO in Hong Kong to raise funds to expand its business in first-tier and second-tier cities.
Onewo Space-Tech Service Co. said in a statement filed with the Hong Kong Stock Exchange on Friday that it plans to use the proceeds to expand its business into more real estate projects in prime cities and invest in companies in the industry’s supply chain or to purchase these.
The company hasn’t provided a timeline for the offering or the amount it intends to raise.
Onewo’s largest shareholder is China Vanke, which holds a 63% stake. The Chinese developer approved a spin-off of the service arm in November.
Founded in 1990, Onewo provides municipal services such as home sales and rental brokerage, as well as home decoration and furnishing services for property owners and occupants. It also offers property and facility management services to developers, governments and other institutional clients.
As of December, the company managed 660.4 million square meters of gross floor space in Hong Kong and China.
The property management unit posted a 13% increase in profit to 1.71 billion yuan (US$269.7 million) last year, while revenue rose 31% to 23.7 billion CNY, the filing said . China Vanke is its biggest customer.
Citic Securities, Citigroup Global Markets Asia and Goldman Sachs are co-sponsors of the transaction.
Write to Anniek Bao at [email protected]
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