Source: China Security News

According to Hong Kong Exchange Union, Evergrande (3333.HK) has completed the IPO procedure as scheduled and will be listed at HKEX on November 5. The issue price of Evergrande is 3.5 HKD /share. The management of Evergrande is going to leave some profit-making space to investors. Evergrande sells about 1,615 million shares this time, which is equivalent to 10.8% of the expanded capital stock; including 1,005 million new shares and 609.9 million old shares, with about 5,653 million Hong Kong dollars raised. After being listed, Evergrande is expected to become a private enterprise with the largest market value in China.
        According to data, the international placement portion of this IPO obtains 12 times of excessive subscription, including the subscription by Li Ka-shing of Cheung Kong Holdings, Cheng Yu-tung of New World Development, Joseph Lau of Chinese Estates and Albert Yeung of Emperor Group. The public offering portion obtains 46 times of excessive subscription. For this, Evergrande starts the clawback mechanism, increases the available shares in the public offering to 484 million shares, increases its proportion of 10% in the total global sales to 30% and freezes 29,537 million Hong Kong dollars. According to well-informed persons, before listing, the grey market trading price of Evergrande shares in Hong Kong is between 3.8 HKD and 4 HKD, 14% higher than the listing price.
        Since the beginning of this year, the sales of Evergrande has been hot. In the first three quarters, the company has signed sales contracts of 23,100 million yuan, increasing by 3 times than 5,400 million yuan in the same period last year. The sales in the third quarter is 12,800 million yuan. The payment collected from the contracts from January to September is 15,700 million yuan, and it is expected 7,400 million yuan will be collected in the future. According to the initial prospectus, the profit will reach 1,033 million yuan in 2009.
        As of the end of September 2009, the total cash of Evergrande (including cash equivalents and restricted cash) reaches 10 billion yuan, increasing by about 96% than the end of the first half of the year. The total sellable building area is about 17,300,000 square meters. The land reserve is about 51,200,000 square meters. The average land cost is 445 yuan per square meter. The company focuses on the market in capital cities and municipality directly under the Central Government with growth potentials. At present, Evergrande has 54 real estate development projects in China, with more than 83% of such projects located in urban areas of municipality directly under the Central Government and capital cities.