Excellence Real Estate eyes HK$7.8 bln from HK IPO

Published: 18 Oct 2009 17:59:32 PST

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Oct. 19, 2009 (China Knowledge) - Shenzhen-based property developer Excellence Real Estate plans to raise up to HK$7.8 billion from an initial public offering in Hong Kong, sources reported.

According to insiders familiar with the situation, the company expects to issue 3 billion shares, or 25% of firm's enlarged share capital, at a price ranging from HK$2.10 to HK$2.60 apiece. The offer price will be about 35 to 45.3 times the firm's forecasted earnings for 2009.

The company has attracted China Life Insurance Co<601628><2628><LFC> and Ping An Insurance (Group) Co<601318><2318> as its cornerstone investors. The two insurers will acquire a combined HK$387.5 million in shares of Excellence Real Estate, sources said.

Excellence now has 11.7 million square meters in land reserves worth RMB 44.6 billion in seven first-tier mainland cities such as Beijing, Shenzhen, Shanghai and Guangzhou.