Kai Shi China lists on the Main Board of HKEx

The company plans to raise up to HK$180mn by international placing and Hong Kong IPO of 150mn shares.

Kai Shi China Holdings Company Limited, the influential real estate developer focusing on mid-rank to upscale residential properties in Dalian Lvshunkou, China, Thursday announced its proposed listing on the Main Board of The Hong Kong Stock Exchange Limited.

The share price is to be set at HK$0.87-1.20 per share. A total of 150,000,000 shares are to be issued in total, of which 135,000,000 shares will be for International Placing and the remaining 15,000,000 shares will be for the Hong Kong Public Offer. Assuming the over-allotment option is not exercised and the offer price is set at the upper end of the pricing range, the Group will raise up to HK$180 million.

The Hong Kong Public Offer will begin on 30 December 2011 and end at 12:00 noon on 6 January 2012. The final offer price will be determined on 7 January 2012, and allotment results will be announced on 11 January 2012. Shares of Kai Shi China will begin trading on 12 January 2012 in board lots of 4,000 shares under the stock code of 1281.

The proceeds will be mainly used for the acquisition of land in Beihaijiedao that is near to Kai Shi Xi Jun project for future development of real estate residential project and the Group’s headquarters. The remaining will be used for the development of Kai Shi Xi Jun and general working capital.

China Merchants Securities (HK) Co., Limited is the sole bookrunner, lead manager and sponsor of the listing.

Mr. Kai Chenglian, Chairman and Chief Executive Officer, said, “Dalian Lvshunkou is at a prime location with ample natural advantages. From the perspective of urban planning, it should become a new economic driver to boost future development of the region. The Group took the initiative to enter the property market in Lvshunkou in 2006. We have got extensive local experience and advantages which differentiates the Group in the industry. This, plus our brand recognition, unique design concepts and qualified construction, help us maintain rapid growth in our business.”

The Group has built its business base in the fully opened Dalian Lvshunkou, with well-designed units in quality large-scale and diverse residential complexes. The Group also operates a doors and windows processing business, which accounted for approximately 10% of the Group’s total turnover. As a step to support the further development of its real estate development business, Kai Shi China has set up a subsidiary, Earthwork Engineering, with the principal business in site foundation and formation in September 2010.

Mr. Kai concluded, “Hong Kong is one of three major global financial centres and is the ideal international financing platform for Chinese enterprises to enter the global market. By listing in Hong Kong, Kai Shi China enjoys access to international capital markets. Along with the rapid development of Dalian Lvshunkou, which is described as the “pearl of Liaoning”, the Group would boost brand awareness based on qualified real estate projects and reward the trust of our shareholders with high profit margins.”