(Bloomberg) – Chinese conglomerate Dalian Wanda Group Co. has shelved a planned IPO in Hong Kong for its shopping mall unit, according to people familiar with the matter.
Zhuhai Wanda Commercial Management Group Co. has postponed the listing due to recent market volatility, the people said, asking not to be identified as the information is private. Tough conditions in China’s real estate sector have also hurt prospects for the company’s IPO, one of the people said.
Wanda had planned to list the unit in the first half of this year, another person said.
Deliberations are ongoing and the IPO could resume if markets improve, the people said. An outside representative for Wanda declined to comment.
The unit’s IPO could have raised about $3 billion, Bloomberg News reported. Asian private equity firm PAG, real estate developer Country Garden Holdings Co. and technology company Tencent Holdings Ltd. were among companies looking to join a roughly $6 billion premarket funding round last year, people with knowledge of the matter said at the time.
Established in 2002, the entity manages 380 Wanda Plaza malls and has 54.2 million square feet of gross floor area as of June 30, 2021, according to its website.
The proposed listing was approved by Chinese regulators last year. Citic Securities Co., JPMorgan Chase & Co. and Credit Suisse Group AG are joint sponsors of the offering, according to preliminary documents filed with the Hong Kong Stock Exchange in October.
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