Chinese property services firm Onewo Space-Tech launches $783m Hong Kong IPO

REUTERS/Bobby Yip

Chinese property services firm Onewo SpaceTech Service has launched Hong Kong’s largest initial public offering (IPO) of 2022 as it aims to raise up to HK$6.15 billion ($783.54 million), regulatory filings showed.

The company, a division of developer China Vanke Co Ltd, has set a price range of HK$47.1 to $HK52.7 a piece for the sale of 116.74 million shares.

China Vanke, the country’s second-largest property developer by sales, owns 62.9% of Onewo, Onewo‘s regulatory filings showed.

The size of the deal was scaled back after Onewo had hoped to raise up to $2 billion as global financial markets remain volatile, people with knowledge of the matter previously told Reuters.

Onewo said it has six cornerstone investors – led by China’s Mixed Ownership Reform Fund, China Chengtong Investment and UBS Asset Management – which have subscribed for up to $280 million worth of the shares on sale.

A final price for the sale will be set on Sept. 22 and public trading of the shares is due to start on Sept. 29.

Onewo‘s transaction will become Hong Kong’s largest IPO of 2022, eclipsing that of Huitongda Network Co Ltd which raised $297 million in February.

Companies have raised just $2.42 billion in IPOs in Hong Kong in the year to date, Refinitiv data showed, versus $23.76 billion in 2021, following a year of Sino-U.S. tension and a tightening regulatory environment in China.

Reuters

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