Chen Xing Development Holdings, a property developer based in China’s Shanxi region, is looking to raise new equity with a listing in Hong Kong.
The developer has shifted its initial public offering plan to Hong Kong from Shenzhen.The firm wants to use the net proceeds of its proposed share sale to finance the development of Phase I of Longtian Project in Jingzhong city, Shanxi.
The remaining proceeds are to be used for working capital.
The company began its real estate business in Jinzhong in 1997. In 2013, it was ranked 279 among the top 500 developers in China.
The bulk or more than 98 percent of its revenue comes from property sales and the rest is derived from letting rental properties.
The developer expanded to Mianyang city, Sichuan in 2007, and it has 15 projects located either in Shanxi city Jinzhong and Taiyuan, or Mianyang.
Today, the company has a sizable land bank, measuring about 2.58 million square meters in the two provinces of Shanxi and Sichuan.
In terms of property types, 70 percent of its land bank have been allotted for residential projects, 10.6 percent for retail premises and the rest for car parking spaces, hotels and studio apartments.