Wanda’s property management unit renews Hong Kong IPO filing

What’s new: Zhuhai Wanda Commercial Management Group Co. Ltd., the commercial real estate management unit of Dalian Wanda Group, renewed its efforts to sell shares in Hong Kong after two failed attempts.

Zhuhai Wanda Commercial Management said it submitted an application to the Hong Kong Stock Exchange on Tuesday evening. This is the company’s third attempt to make an initial public offering in Hong Kong after two previous applications filed in October 2021 and April 2022 expired.

In the new app, Zhuhai Wanda Commercial Management has updated its financial figures. At the end of June, the company operated 425 Wanda Plazas across the country, up 11.84% from the first application.

Zhuhai Wanda Commercial Management’s first-half revenue totaled 13.5 billion yuan ($1.8 billion), up 26.7 percent from the same period a year ago. Net cash flow from trading activities was 2.7 billion yuan, up 109.3% year-on-year.

Background: Zhuhai Wanda Commercial Management is Wanda’s asset-light unit established in March 2021 by restructuring property management assets with a strategic investment of 3 billion yuan from the Zhuhai government.

The unit’s backers also included private equity fund PAG, Tencent Holdings and Ant Group after a pre-IPO funding round in September 2021.

Wanda has sought to publicize commercial property management business in the domestic market since 2015, but made no progress in the face of Beijing’s tight control over the financing of the real estate sector. Wanda withdrew the mainland listing application in August and said it would consider an overseas offering after the asset restructuring.

Expirations and resubmissions of IPO applications are not uncommon in Hong Kong, an investment bank official said. An expiration can be caused by factors such as requests from regulators, outdated financial data or a company’s decision to slow progress due to concerns about the market environment, the person said.

Quick Takes are condensed versions of China-related stories for quick news that you can use.

Contact reporter Han Wei ([email protected]) and editor Bob Simonon ([email protected])

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