China Vanke’s US$784 million IPO spin-off attracts Temasek, UBS, hedge funds as cornerstone investors

Six cornerstone investors including Temasek and global hedge funds will sign up for 35.8 per cent of the IPO shares, or 3.5 per cent of the company’s equity

Onewo is due to price its Hong Kong IPO shares on September 22 and starts trading on September 29, according to indicative timetable

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The Connect Hall inside the Hong Kong stock exchange in Central, Hong Kong. Photo: Jonathan Wong

Published: 1:02pm, 19 Sep 2022Updated: 1:27pm, 19 Sep 2022

China Vanke, the nation’s third-biggest property developer by sales, has attracted six cornerstone investors including Temasek Holdings and hedge funds managed by UBS Group to the initial public offering (IPO) by its property services unit in Hong Kong.

The Shenzhen-based developer is seeking to raise as much as HK$6.15 billion (US$784 million) by selling 116.7 million shares in its unit Onewo Inc, according to a stock exchange filing on Monday. The shares are being marketed at HK$47.10 to HK$52.70 each.

State-owned fund management firm China Chengtong group is anchoring the US$280 million block of purchase by key investors. It has committed to 13.6 million Onewo shares worth HK$725 million at the top-end of the price range. Temasek will take up US$25 million worth of shares while UBS Asset Management unit in Singapore will buy a US$60 million stake.

Vanke chairman Yu Liang is spinning off Onewo unit in a challenging market environment. Photo: Edward Wong

China Vanke’s ownership in Onewo will drop to 56.6 per cent from 63 per cent after the IPO. Citic Securities, Citigroup and Goldman Sachs are joint sponsors of the stock offering.