The Guangzhou-based property developer, Chinese Evergrande Real Estate Group Limited (HKG:3333) plans to raise up to $769 million in a Hong Kong initial public offering, according to a term sheet obtained by Reuters on Monday, 63 percent below its attempted goal last year.
Like so many property IPOs, the Evergrande deal was pulled in 2008 after the financial crisis hammered Asian stock markets.
Evergrande is a high-profile IPO not only because of its size, but also because of the Western banks and hedge funds involved in the offering.
Evergrande plans to raise up to $769 million — well below the $2.1 billion offer it tried last year. Earlier, reports said Evergrande hoped an IPO would fetch more than $1 billion.
It is also at a discount to the valuations of two other Chinese property companies that are currently raising US$1.3 billion in total from IPOs themselves. Excellence Real Estate Group Ltd. has been priced at 7.5 to 9.3 times earnings, while Yuzhou Properties Co. is priced at 5.2 to 7.2 times.