The listing would provide a guide to how investors mulling new share sales rank assets tied to China’s developers. The nation’s real estate sector has been under pressure this year, most recently as Covid lockdowns hurt home sales by already cash-strapped builders.
The IPO also joins other billion-dollar offerings taking place in Hong Kong since July, following a drought of large-size listings in the first half of the year. Proceeds raised through new share sale in the city slumped in 2022 amid headwinds ranging from high inflations, surging rates and regulatory woes in China.
Onewo offers residential property services, commercial and urban space integrated services and so-called remote space-tech solutions, incorporating artificial intelligence and business process outsourcing, according to the prospectus. Vanke owns about 63% of the property management unit before the IPO.
Shenzhen-based Vanke last month stood out as the first top-tier China property developer to report stronger earnings, defying a downturn that’s engulfed peers once seen as relatively safe.
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Onewo’s IPO could boost Vanke’s cash coverage of short-term debt and cornerstone investors such as Temasek could strengthen the listing’s appeal, Bloomberg Intelligence analysts Kristy Hung and Lisa Zhou wrote in a note.
Onewo expects to price the shares on Thursday with listing in Hong Kong slated for Sept. 29. Citic Securities Co., Citigroup Inc. and Goldman Sachs Group Inc. are joint sponsors of the offering.
