Jinke Selects Banks for Property Management Arm's Hong Kong IPO

The real estate developer has picked CLSA Ltd. and Huatai International as its firms for its $500 million listing.

Author: Anthony Russo   

The real estate development company Jinke Property Group Co., Ltd. (SZ: 000656) has chosen banks for the Hong Kong listing of its property management arm; it aims to raise at least $500 million.

The Chongqing-based company will have CLSA Ltd. and Huatai International Financial Holdings Ltd. work on its units' IPO plans, as reported by Bloomberg today, which said the discussions are private. 

Jinke has followed the footsteps of Chinese firms spinning off its property management arms in 2020, which includes KWG Group Holdings Ltd. (HKEX: 1813) Excellence Group.

Operating for more than 20 years, Jinke develops residential, industrial, and commercial properties. According to its 2019 annual report, its unit manages roughly 800 projects across more than 20 provinces in China. 

In the full year 2019, the property management arm reported revenue of approximately 2.8 billion yuan ($396 million) on a net income of 406 million yuan. Also, Jinke's property management arm was ranked among the country's top 10 property management companies by the real estate consulting firm China Index Academy in 2019.

For this week, all eyes will be on the gaming giant NetEase, Inc., (Nasdaq: NTES) as it gets set to lift trading in Hong Kong on June 11 for its $2.72 billion IPO. The following week, the online retail giant JD.com, Inc.  (Nasdaq: JD) will look to begin trading on the exchange and aim to raise more than $4 billion. 

On Monday, the Hang Seng Index added more than 6 points after the U.S. Labor Department posted a shockingly good job report for May on Friday. In Shenzhen, shares of Jinke traded 2% higher from Friday close.

Hong Kong investors will definitely want to keep an eye on Jinke's listing plans after NetEase and JD begin trading, as Bloomberg says the details of the offering size is subject to change.