Shanxi Province's first publicly listed property developer is born—starting in Jinzhong.
Release date:
Jul 04,2015
Our province has finally welcomed its first publicly listed property developer! On the morning of the 3rd, Chenxing Development, a company originally founded in Jinzhong City within our province and specializing in real estate and property development, successfully launched its IPO on the Hong Kong stock exchange after eight years of preparation. By the close of trading this afternoon at 4:00 p.m. Hong Kong time, Chenxing Development had recorded a turnover of HK$35.2 million, with the stock closing at HK$3 per share. In fact, Chenxing Development’s journey toward an IPO can be traced back to 2007, when its predecessor, Chenxing Real Estate, officially transformed into a joint-stock company in preparation for listing—and received strong backing from governments at various levels across our province. In 2009, Chenxing was even designated as one of the three key enterprises in our province slated for public listing support.
Our province has finally welcomed a publicly listed property developer! On the morning of the 3rd, Chenxing Development, a company originally founded in Jinzhong City within our province and specializing in real estate and property development, officially debuted on the Hong Kong stock market after eight years of challenges. As of 4:00 p.m. today, when Hong Kong stocks closed, Chenxing Development recorded a trading volume of HK$35.2 million, with its closing price at HK$3 per share.
In fact, Chenxing Development's preparations for an IPO can be traced back to 2007. That year, Chenxing Real Estate—Chenxing Development's predecessor—officially restructured into a joint-stock company in preparation for going public, and it received strong support from governments at various levels across our province. By 2009, Chenxing had been identified as one of the three key enterprises in our province slated for priority support in their pursuit of an IPO. However, due to the impact of national real estate market regulations and broader macroeconomic policy trends, Chenxing’s ambition to list on the domestic stock exchange remained unfulfilled, prompting the company to explore opportunities for an overseas listing instead.
On January 28, 2015, Chenxing Real Estate entered into a termination agreement with its A-share sponsor and instead decided to submit an IPO application to the Hong Kong Securities and Futures Commission. On February 16, the Hong Kong SEC disclosed that it was actively reviewing the listing application related to Chenxing Real Estate's Hong Kong-based platform, "Chenxing Development." Then, on June 22 of this year, Chenxing Development Holdings Limited announced that it had officially launched its public offering in Hong Kong, with share price ranging from HK$2.6 to HK$3.2. The company plans to issue a total of 100 million shares, aiming to raise between HK$260 million and HK$320 million. Of these, 10% of the shares will be available for public sale, with each trading lot consisting of 1,000 shares and an entry fee of HK$3,232. This marks a significant milestone in the ongoing process of listing Chenxing Development.
At 9 a.m. on the 3rd, Chenxing Development (HK.2286) was officially listed on the Main Board of the Hong Kong Stock Exchange, with Chairman Bai Xuanqui ringing the opening bell. Based on Chenxing Development's issue price of HK$3 per share, the company raised a total of HK$300 million from its IPO. Chenxing stated that 90% of the funds raised will be allocated to advancing Phase I of the Longtian Project in Jinzhong City, while the remaining 10% will be used for working capital and other general corporate purposes.
Founded in 1997 in Jinzhong City, Shanxi Province, Chenxing Development has become the province's most prominent and influential real estate brand. Over the past two decades, the company has diversified its property portfolio to include residential units, commercial spaces, office buildings, hotels, and integrated urban complexes. Today, Chenxing’s projects are primarily located in Jinzhong City, Taiyuan City within Shanxi Province, as well as in Mianyang City, Sichuan Province. In 2012, 2013, and 2014, Chenxing Development generated sales revenues of RMB 271 million, RMB 317 million, and RMB 871 million, respectively. As of the end of March this year, the company had completed development on 10 major projects and several phases of an additional two projects. With a total land reserve totaling 2.4 million square meters of floor space, Chenxing is well-positioned to support its expansion plans over the next four to five years.
Keywords:
