All ‘A’ eyes are on Wanda realty arm be­fore re-list­ing

China Daily (USA) - - BUSINESS - By CAI XIAO caix­iao@chi­

Ex­pected list­ing of Dalian Wanda Com­mer­cial Prop­er­ties Co on the Shang­hai Stock Ex­change’s A-share mar­ket, af­ter it delists from the Hong Kong bourse, will likely see main­land in­vestors chas­ing its shares, ex­perts said.

Ear­lier this month, Chi­nese billionaire Wang Jian­lin, the largest share­holder in Dalian Wanda Com­mer­cial Prop­er­ties, won share­hold­ers’ ap­proval to buy out the Wanda group’s real es­tate arm for HK$34.5 bil­lion ($4.4 bil­lion), which would make it the biggestever delist­ing in Hong Kong.

“Main­land in­vestors, in­clud­ing ex­ist­ing A-share com­pa­ni­esthat arepart-fund­ing the Hong Kong delist­ing and po­ten­tial shell firms that the Wanda group com­pany may need if it de­cides to have a back­door list­ing, will eye shares in DalianWanda Com­mer­cial Prop­er­ties,” said Ma Wenya, gen­eral man­ager of Sun­day Fund Co Ltd, which man­ages as­sets worth 300 mil­lion yuan.

Dalian Wanda Com­mer­cial Prop­er­ties said in its fil­ings with the Hong Kong ex­change that main­land’s A-share com­pa­nies Royal Group Co Ltd, Hei­longjiang In­terchina Watertreat­ment Co Ltd, Macrolink Cul­tur­al­tain­ment De­vel­op­ment Co Ltd and Ningbo Shan­shan Co Ltd are part-fund­ing its delist­ing.

Shares in Royal Group Co Lt­drose to 21yuanonWed­nes­day, up47 per­cent­fromAug15, when DalianWan­daCom­mer­cial Prop­er­ties re­leased share­hold­ers’ vote re­sult on the delist­ing deal.

In the same pe­riod, Hei­longjiang In­terchina Watertreat­ment Co Ltd surged 40 per­cent to 6.46 yuan.

Wang Jian­lin told Reuters

“Main­land in­vestors will eye (its) shares... in case it de­cides to (go in for) a back­door list­ing.” gen­eral man­ager of Sun­day Fund Co Ltd.

MaWenya, that DalianWanda Com­mer­cial Prop­er­ties would list on the Shang­hai Stock Ex­change through ei­ther an ini­tial pub­lic of­fer­ing or a back­door list­ing.

Ap­proval for an IPO could take two or three years, while a back­door list­ing would re­quire more than a year.

By Aug 18, 850 com­pa­nies were await­ing ap­proval of their IPO ap­pli­ca­tions. Only 107 of them had com­pleted all ex­am­i­na­tions and re­ceived ap­provals, ac­cord­ing to the China Se­cu­ri­ties Reg­u­la­tory Com­mis­sion.

DalianWan­daCom­mer­cial Prop­er­ties is one of the other 743 com­pa­nies that are yet to get through all the ex­am­i­na­tion and ap­proval pro­cesses.

Li­uJipeng, deanof theCap­i­tal Fi­nance In­sti­tute, which is un­der the aegis of theChina Univer­sity of Po­lit­i­cal Sci­ence and Law, said the delist­ing of Dalian Wanda Com­mer­cial Prop­er­ties is rea­son­able be­cause its val­u­a­tion is low in theHongKong mar­ket.

Fresh list­ing on the A-share mar­ket can un­lock the stock’s value and ben­e­fit in­vestors, he said.

Typ­i­cally, main­land-listed firms com­mand higher val­u­a­tions than those traded in Hong Kong, helped by a large pool of re­tail in­vestors.

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