Evergrande plans smaller IPO

Guangzhou-based property developer Evergrande Real Estate Group plans to revive a listing on the Hong Kong stock market as early as next month after scrapping a US$2.1 billion initial public offering in March due to weak demand, the South China Morning Post reported. Evergrande told three potential sponsors for the IPO, Goldman Sachs, Merrill Lynch and Credit Suisse, to speed up the listing process by submitting updated financial and shareholder information to the Hong Kong stock exchange, according on an anonymous source quoted by the newspaper. A successful listing is expected to be 50-60% less than the proposed March offering, according to other sources. In late June, Evergrande sold a 13% stake worth US$506 million to help raise funds for new building projects.

For a detailed look at mainland developers' funding shortages in 2008, please see this report from our August issue. 

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