Wanda Commercial plans $3.8 billion Hong Kong IPO: reports

Dalian Wanda Commercial Properties Co., controlled by Chinese billionaire Wang Jianlin, plans to raise up to $3.8 billion in what would be Hong Kong's biggest listing this year, financial media reported Monday. The Chinese shopping mall developer plans to sell 600 million shares for between HK$41.80 to HK$49.60 (US$5.39 to $6.40) each, Dow Jones Newswires reported, citing a person familiar with the matter. That would put the company's valuation at between HK$161 billion and HK$191.5 billion, or US$20.8 billion to $24.7 billion. The initial public offering comes at a difficult time for China's property market, where prices have been falling for months and construction rates have been slowing. Wanda has slashed its IPO fundraising target by about a third from the original goal, possibly to attract investors concerned by the slowing real estate market, while analysts have also pointed to the company's high debt levels. In September it was reported by Dow Jones and others as seeking to raise about $5 billion to $6 billion in the float. The IPO, which is expected to launch by December 23, has already drawn $1.99 billion of commitments from cornerstone investors including Kuwait's sovereign wealth fund, Bloomberg reported. Cornerstone investors will account for at least 52 percent of the listing, the agency said, citing a term sheet. Wanda Commercial could not immediately be reached for comment. The company is one of the world's largest developers of shopping malls, owning dozens across China. It is the flagship arm of Dalian Wanda Group Co. whose secretive billionaire owner, Wang, is worth an estimated $15 billion.