longfor-keeps-valuations-high-for-ipo-of-up-to-916-million

Longfor keeps valuations high for IPO of up to $916 million

The company is banking on a strong brandname and its transformation into a nationwide player as a way to draw investors into the deal.

Longfor Properties will kick off the roadshow today for an initial public offering that is seeking to raise between HK$6.06 billion and HK$7.1 billion $782 million to $916 million. Coming on the heels of several other property IPOs that have failed to attract much interest from investors, the launch may seem somewhat brave and the company is also upping the ante by ignoring the fact that other listing candidates have been forced to come at increasingly lower valuations and is offering its shares at a much more expensive price.

Analysts and bankers involved in the deal are arguing that Longfor deserves a higher valuation than the other Chinese property companies that...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222