Lee Shau-kee eyes new shares of China South City

Sep. 14, 2009 (China Knowledge) - Tycoon Lee Shau-kee, chairman of Henderson Land Development Co Ltd<0012>, is interested in subscribing the new shares of China South City Holdings, a Shenzhen-based company that will launch its Hong Kong initial public offering this month, the Apple Daily reported Saturday, citing Martin Lee, vice chairman of Henderson, as saying.

China South City Holdings, which manages logistics operations and runs a trade center in Shenzhen, expects to issue 1.5 billion shares to raise up to HK$3.15 billion from the IPO and will use the funds to expand its operations into Guangxi, Jiangxi and Shaanxi over the next five years, according to the report.

The company kicked off the roadshow last Friday. Trading will begin on Sep. 17.

Bank of America Merrill Lynch is reportedly the sponsor of the IPO. The American lender signed a convertible bond placement agreement worth US$125 million with the company on Jun. 20.

China South City had planned to list in Hong Kong last year, but the plan was shelved due to poor market conditions.