By Prudence Ho
HONG KONG--A hotel trust whose assets include the Grand Hyatt
Shanghai and a business park developer joined a number of Chinese
companies capitalizing on Hong Kong's stock market surge in recent
weeks with planned initial public offerings raising up to US$900
million in total.
Jinmao Investments and Jinmao (China) Investments Holdings Ltd.
started taking orders for its up to US$437 million Hong Kong IPO on
Monday, while Yida China Holdings Ltd, a business-park developer,
has kicked off a sale of up to US$217 million for its float with
half of the deal already taken by cornerstone investors who have
agreed to hold shares for six months once the firm has listed.
The two potential listings join two other smaller firms--online
gaming firm Ourgame International Holdings Ltd., and software
provider Chanjet Information Technology Co.--which are raising a
combined US$240 million before listing in the city by the end of
June.
The planned listing of these companies comes after a
more-than-5% jump in Hong Kong's Hang Seng Index since May 1.
Jinmao is seeking to sell 600 million share-stapled units in a
range of HK$5.35-HK$5.65 each (US$0.69-US$0.73), according to a
term sheet seen by The Wall Street Journal. These stapled
securities include units in a trust linked to shares in the company
that holds the trust's underlying assets.
Four cornerstone investors, including private-equity firm
Warburg Pincus LLC, have committed to buying a total of US$40
million, or around 10% of Jinmao 's IPO, the term sheet said. It
plans to list on the Hong Kong Stock Exchange July 2.
Jinmao trust's assets will include six completed hotels in
mainland China, including The Westin Beijing Chaoyang and JW
Marriott Shenzhen, as well as two under development, the
Renaissance Beijing Wangfujing Hotel and Grand Hyatt Lijiang. Grand
Hyatt Shanghai is part of Jin Mao Tower, a mixed-use development
that includes offices and retail space that will also be included
in the trust.
Three other Hong Kong-listed companies have used a stapled-unit
structure. They include HKT Trust, the telecommunications trust
which was spun off from PCCW Ltd. in 2011, and Langham Hospitality
Investments Ltd., a hotel trust backed by Great Eagle Holdings Ltd.
that listed last year.
The third, HK Electric Investments, an investment trust
controlled by Power Assets Holdings Ltd., raised US$3.11 billion in
a January IPO.
Separately, Yida China Holdings Ltd. is selling 580 million
shares in an indicative price range of 2.30-2.90 Hong Kong dollars
each, representing 4.5 times to 5.7 times 2014 forecast earnings,
according to term sheets seen by The Wall Street Journal.
Yida has secured a total of US$106.3 million, or almost half of
the deal, from six cornerstone investors including China Cinda
Asset Management Co, which is buying US$40 million worth of shares,
and China Huarong Asset Management Co, which is buying US$30
million, the term sheets said.
The business-park developer will price the deal June 20 and it
is scheduled to list in Hong Kong on June 27, the term sheet
said.
Write to Prudence Ho at prudence.ho@wsj.com and Yvonne Lee at
yvonne.lee@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires