Evergrande Property's Hong Kong IPO raises HK$14.3b: sources

[HONG KONG] Evergrande Property Services Group's initial public offering (IPO) in Hong Kong has raised HK$14.3 billion (S$2.47 billion), with stock sold at the lower end of the price range, three sources with direct knowledge of the matter said.

Half the funds raised will go to the company with the other half earmarked for its debt-laden parent China Evergrande Group .

The sale of 1.621 billion shares, equivalent to a 15 per cent stake, was priced at HK$8.80, compared to a marketed range of HK$8.50 to HK$9.75 each, the sources said, declining to be identified as the information has not yet been made public.

Evergrande Property Services declined to comment.

A greenshoe option also exists, which if exercised would take the size of the stake sold to 17 per cent.

Evergrande, China's second-biggest and most indebted property developer with some US$124 billion in borrowings as at June, has been scrambling for cash as Beijing tackles what it considers excessive borrowing in the sector with new debt-ratio caps.

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It recently raised US$555 million in a secondary share sale, but this month decided to give up on plan to inject most of its property assets into a Shenzhen company after it failed to get off the ground for four years.

REUTERS