Mainland property management firm Zhong Ao Home in HK$459 IPO
Firm looks to tap market as investors grow more interested in property-related service providers
Zhong Ao Home Group, a mainland property management firm, will start a public offering of 224 million shares today to raise up to HK$459 million to support growth through mergers and acquisitions.
Trading on the Hong Kong stock exchange is expected to commence on November 25, with the initial public offering price range having been set at HK$1.72 to HK$2.05 per share.
The 10-year-old company, based in Guangzhou, competes with two major rivals already listed in Hong Kong – Colour Life and China Overseas Property Holdings – and many others that are preparing for such a move to fuel expansion.
It managed 33.7 million square metres of property space as of the end of September, versus 270 million square metres by top player Colour Life as of the end of June.
“We are an independent third-party property manager, which enables us to have a wider client base than those backed by developers,” Chen Zhuo, Zhong Ao Home’s vice-president and executive director, said on Thursday.
Property management stocks are expected to outperform China property stocks
As the market was fragmented, with the top 100 players having a combined market share of less than 8 per cent, many regional developers would be happy to outsource property management services to a third-party firm like Zhong Ao Home, she added.
