Wanda valued at HK $250 billion O2O core support

Head of the world's second largest commercial property owners and operators of the halo of Dalian Wanda Commercial Real Estate Co., Ltd. (3699. HK, hereinafter referred to as "Wanda commercial Real Estate") into the road show the second day, the underwriting group revealed that the current investor response is good, the sales situation is very satisfactory.

The 21st century economic reporter Yu Lu's first day of the IPO revealed that Wanda commercial real estate has received 11 cornerstone investors to subscribe to a total of about 1.994 billion dollars in shares. December 9, the updated prospectus showed that the number of cornerstone investors increased to 12, the new Fubang will subscribe to the value of 100 million U.S. dollars of shares, cornerstone investors total subscription value of shares also increased to about 2.094 billion U.S. dollars, to issue a middle price, about 59.22% of the sale of shares.

Wanda Commercial Real Estate's H-share IPO plans to issue 600 million shares, 95% on the global offering, offering a price range of HK $41.8 to HK $49.6, raising capital at a maximum of 3.836 billion U.S. dollars and investment banks valued at more than HK $250 billion.

Wanda Group chairman Wang attended the December 8 Investor's Road luncheon, did not appear in the 9th press conference, Management explained that Wang himself is not a listed company management, so did not appear.

Two listed platforms coexist

A well-known story is that, before the choice of Hong Kong listing, Wanda Commercial real estate has considered a share listing, the process is also in the prospectus more detailed explanation.

Wanda Commercial Real Estate said that in March 2010, the Chinese Securities Regulatory Commission (hereinafter referred to as the "China Securities Regulatory Commission") applied for listing in Shanghai, the Securities Regulatory Commission formally accepted the application for listing on the same month 25th, but has not made any progress since then, and has not received advice on listing applications. Wanda Commercial Property said that it had decided to move to Hong Kong listing after considering its business development and financing plan, and therefore no further action was taken to update its listing application to the China Securities Regulatory Commission, which expired in July this year.

In the commercial property package before the listing of assets, last year, Wanda Group in the BVI set up the Wanda commercial real Estate Overseas Co., Ltd., a move is to buy the Hong Kong stock Exchange listed in the constant force commercial real Estate This "shell", renamed as Wanda Commercial Real estate (0169. HK). This August, again renamed as Wanda Hotel Development Limited (hereinafter called "Wanda Hotel"), positioning into Wanda private brand hotel in overseas investment and operation of the platform.

"Now (Wanda Hotel) is the listed Wanda Commercial real estate subsidiary, its positioning is Wanda Overseas hotel investment and development platform, all of its business is included in Wanda commercial real estate, (both business) there is no overlap problem." "Wanda Commercial Real Estate board secretary Liu Chaohui said.

Wanda Commercial Real Estate now holds a 65.04% per cent stake in the Wanda Hotel, which holds assets including the Guilin Wanda Plaza Project, the Madrid project in Spain, the London Project and the Chicago Project in the United States. As a subsidiary, Wanda Hotel is also part of the listed assets.

One problem with Wanda Hotels as a listing platform is that the rate of injection of assets may be slow. HKEx has strict rules on the size of assets injected into shell companies within two years, any one of the 24-month-old assets that the shell-listed enterprise accumulates is more than 100% of any of the five test indices, such as earnings, market capitalisation, asset, profit and equity, which may be considered as a new IPO for approval.

"The size of the assets of Wanda commercial real estate is too ' big ' for the shell, and it could take years to make a public listing by injecting assets." "A real-estate analyst at a foreign investment bank in Hong Kong said to the 21st century Economic report. IPOs, by contrast, are a better choice.

Wanda Commercial Real Estate non-executive director Wangguiya said, at present Wanda commercial real estate's overseas development aspect, already has locked some developed countries the rule of law sound the Gateway city. Information disclosed by the prospectus shows that the areas covered include London, Madrid, Los Angeles, Australia and Chicago.

O2O Story

The assets of Wanda commercial real estate are regarded as the best three sectors of Wanda Group--long-term investment in commercial property development leasing, development and sale of properties and hotel operations.

Despite the rapid growth of property management and hotel operations, the revenues of Wanda commercial real estate have been mainly derived from the sale of the properties it has developed. As at 2011, 2012, 2013 and June 30, 2014, property sales accounted for 89.6%, 85.6%, 86.4% and 70.1% of total revenue.

Another issue of concern to investors is the high indebtedness of Wanda commercial property. As at 2011, 2012, the end of 2013 and June 30, 2014, the total amount of their banks and other borrowings were 69.747 billion yuan, 93.228 billion yuan, 130.318 billion yuan and 172.362 billion yuan respectively; As of the same day, the leverage ratio was 38.8%, 48.7%, 53% and 87.8%. In the first six months of this year, interest expenses amounted to $6.21 billion, of which 77% was shorter than 5 years. As of September 30 this year, Wanda commercial real estate has pledged its share capital held by 26 subsidiaries to guarantee the outstanding balance of 20.773 billion yuan of trust loans.

"Wanda (commercial real estate) really missed the 2006-2007-year listing tide, but now after all, apart from green space, the last unlisted large housing enterprises, but also is a feature, compared to small and medium-sized housing enterprises or better." "A Hong Kong real estate industry analyst told the 21st century Economic report.

Wanda Commercial Real estate hope to be able to distinguish between the other housing companies a selling point is that Wanda commercial real estate's controlling shareholder Wanda Group and Tencent, Baidu's E-commerce cooperation, Wanda Group will hold E-commerce joint venture 70% equity. Wanda Commercial Real Estate and Wang wholly-owned holding company Wanda Investment Holdings Information (Wanda information), to hold a 70% stake in the joint venture, Wanda Commercial real estate by holding information 50% of the equity indirect holding joint venture, that is, the equivalent of holding 35% of the joint venture.

"Wanda Electric business planning is to establish a fully integrated online O2O open platform, through the adoption of new technologies to build a more intelligent offline platform." Quedejun, senior vice president of commercial real estate, said the value of the offline platform could be enhanced through the integration of experience and value-added services for offline terminal customers.

According to the prospectus, the partnership is at an early stage and the joint venture has not yet been established, and it is expected that the capital investment of the joint venture by Wanda Commercial Real estate shall not exceed 1.75 billion yuan before 2017.