China’s Dalian Wanda files for HK listing of commercial property business

REUTERS/Bobby Yip

Chinese conglomerate Dalian Wanda Group is bringing its commercial property business back to the Hong Kong stock market as it filed for an initial public offering (IPO) last week.

The draft application filed with the HKEX is heavily redacted and Wanda has not provided financial details of the listing, including the number of shares that Zhuhai Wanda Commercial Management Group intends to offer.

The filing, however, showed that cornerstone investors in the unit include Hong Kong-based private equity firm PAG, Chinese property developer Country Garden, PE firm CITIC Capital and tech giants Ant Group and Tencent Holdings.

In September, Reuters had reported that Dalian Wanda Group had raised nearly $6 billion for its commercial property management unit, with PAG leading the fundraising with a $2.8 billion investment.

The unit, which was formerly named Wanda Light Asset, was valued at $28 billion in the pre-IPO fundraising, slightly below its target of $31 billion, according to sources interviewed by Reuters.

According to the filing, Zhuhai Wanda Commercial Management Group is the largest commercial operation service provider in China, targeting property owners.

As of June 30, 2021, the unit managed 380 malls with a gross floor area under management of 54.2 million square meters. About 280 of these malls are owned by the parent group while the remaining are owned by third parties.

It also reported 162 pipeline projects, including 133 projects from independent third parties, as of June 30, 2021.

The initial filing comes seven months after Dalian Wanda announced that it has decided to withdraw an application for a China IPO based on strategic considerations.

The company said then that it will restructure its assets in areas including commercial operation, technology, and data and will seek a listing in either domestic or overseas market.

The listing also fulfils Wanda’s promise in 2018 to list by October 31, 2023, a term that was part of the $5.4 billion funding from Tencent Holdings, online mall JD.com Inc, Sunac China Holdings, and Suning Commerce Group.

The said investors held stakes in the firm when it delisted from the Hong Kong Stock Exchange in 2016. Wanda Commercial was delisted from Hong Kong in a $4.4 billion privatisation.

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.