What’s new: China’s top securities regulator accepted an application from Dalian Wanda Group’s commercial property management unit for a public listing in Hong Kong, a key step toward the company’s long-sought share sale plan.
The acceptance will allow Zhuhai Wanda Commercial Management Group Co. Ltd. to submit its listing application to the Hong Kong exchange. The company still needs to satisfy the China Securities Regulatory Commission’s inquiries to get the final go-ahead before it attends a listing hearing with the Hong Kong Stock Exchange, the final step toward a debut.
Zhuhai Wanda Commercial Management reported 22.8 billion yuan ($3.5 billion) in revenue in the first half, compared with 17 billion yuan a year ago. Net profit rose 14% to 9.1 billion yuan.
The background: Zhuhai Wanda Commercial Management is Wanda’s light asset unit created in March by revamping its property management assets with a 3 billion yuan strategic investment from the Zhuhai government.
The unit manages more than 300 Wanda Plazas across the country and secured about $6 billion of pre-IPO funding in September from investors including private equity fund PAG, Tencent Holdings and Ant Group.
Wanda sought to list its commercial property management business on the domestic market since 2015 but made no progress in the face of Beijing’s tight control over property sector financing. Wanda withdrew the mainland listing application in August and said it would consider an overseas offering after asset restructuring.
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (hello@caixin.com)
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