Tencent-backed Anjuke Group Inc, an online platform that delivers real estate information, on Thursday filed an application for an initial public offering (IPO) on the main board of the Hong Kong Stock Exchange.
In its prospectus, Anjuke did not disclose the offering size and timeline for the IPO. BofA Securities, Credit Suisse, and CICC are serving as joint sponsors for the proposed offering.
The IPO filing comes over a month after Anjuke raised an aggregate $250 million in funding led by Chinese realty developer Country Garden’s affiliate Beam Merit Limited with participation from a host of industry players including New World Development, Agile, Sun Hung Kai, Henderson, China State Construction Land, Times Property, and Chinachem Group.
Anjuke primarily provides online marketing services for new and existing properties under its two flagship sub-platforms Anjuke and 58 Real Estate. During the fourth quarter of 2020, it registered 67 million monthly active users on mobile.
The group also operates Aifang, a platform that facilitates new property sales through brokerage brands and agents. As of 2020, Aifang clocked GTV of 65.3 billion yuan ($10 billion), up 282% from 2019.
Additionally, it also runs Qiaofang, a software-as-a-service (SaaS) solutions specialist for brokerage brands.
By end of 2020, Anjuke Group generated annual turnover of 8.05 billion yuan ($1.23 billion), a 6.2% year-on-year growth.
Chinese online classifieds marketplace 58.com acquired Anjuke Group in 2015 for a consideration of $267 million. Subsequently, in 2020, Anjuke’s controlling shareholder 58.com was taken private by a consortium backed by PE firms Warburg Pincus and General Atlantic. The privatisation deal valued 58.com at $8.7 billion.
Anjuke’s major shareholders include Tencent, which holds a 14.1% stake, and private equity firms Warburg Pincus and General Atlantic.
China’s real estate market represents 23.6% of the country’s GDP, per 2020 estimates. The market size of the residential market was estimated at 24 trillion yuan ($3.7 trillion) in 2020 and it is expected to increase to 36.6 trillion yuan ($5.6 trillion) by 2025, the group said.