The property services unit of Chinese property developer China Vanke known as Onewo, has gained approval for an IPO in Hong Kong where it intends to raise between $1-$1.5bn, lined up in September 2022. However, Onewo’s IPO schedule could change as it is subject to market conditions. Given the current downturn in China’s property sector, Onewo’s IPO comes at a difficult time as many major developers including the likes of Country Garden have suffered a major drop in earnings. Onewo said in a draft prospectus, “due to delay in construction and/or sales schedules, we may experience a slower growth in our value-added services for developers”. Together with China Resources Mixc Lifestyle, its competitor, both firms are among the top five property management services providers in China. Onewo intends to use the net proceeds to improve its technology and acquire majority interests in 5-15 residential property service providers in the next 3-5 years. China Vanke is the country’s second-largest property developer by sales and owns approximately 63% of Onewo.
Vanke’s USD 3.975% 2027s were up 0.2 points to 85.25 cents on the dollar, yielding 7.46%.