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China Vanke’s House-Administration Arm Programs Hong Kong IPO

By Anniek Bao

China Vanke Co.’s assets-management arm has filed for an preliminary public providing in Hong Kong to elevate resources to extend its business enterprise in to start with- and 2nd-tier metropolitan areas.

Onewo House-Tech Services Co. explained in a submitting to the Hong Kong trade Friday that it options to use the proceeds to increase its enterprises to far more property jobs in first-tier towns and to devote in or receive corporations in the industry supply chain.

The organization did not specify a timeline for the offering nor the amount of money it seeks to increase.

Onewo’s largest shareholder is China Vanke, which retains a 63% stake. The Chinese house developer approved a spinoff of the service arm in November.

Started in 1990, Onewo features group providers this sort of as home income and rental brokerage as properly as dwelling decoration and furnishing companies for property entrepreneurs and inhabitants. It also provides house and facility management services for builders, governments and other institutional clientele.

As of December, the company had a gross floor spot of 660.4 million square meters under management in Hong Kong and China.

The property-management unit posted a 13% increase in financial gain to 1.71 billion yuan ($269.7 million) very last 12 months, whilst profits rose 31% to CNY23.7 billion, it mentioned in the filing. China Vanke is its premier consumer.

Citic Securities, Citigroup World Marketplaces Asia and Goldman Sachs are performing as joint sponsors on the offer.

Compose to Anniek Bao at anniek.bao@wsj.com