Transaction Overview
▶ China Vanke Co., Ltd (“Vanke” or “issuer”) announced a US$994 Million H Share Primary Placement on 28 March 2019. The H Share Primary Placement was priced at HK$29.68 per H share, representing a discount of 5.0% to the last closing price of HK$31.25 on 27 March 2019; The placement offered 262,991,000 H shares, representing (i) approximately 2.38% of the existing issued share capital of the Company as at the date of the announcement; and (ii) approximately 2.33% of the issued share capital of the Company as enlarged by the issue of the subscription shares immediately after the completion of the placing and the subscription; CMBI acts as Placing Agent for this Primary Placement of Vanke
▶ This Placement of Vanke is the first Chinese Real Estate Company H Share Primary Placement since 2007 and has significant meaning in current market environment
▶ This Placement is the second largest H Share Primary Placement since 2018. As of now, CMBI has been the placing agent for the all top three largest H Share Primary Placements since 2018
Source: HKEX, Dealogic
Offering Summary
|
Issuer: |
China Vanke Co., Ltd. |
|
Transaction Date: |
March 28th, 2019 |
|
Offering Amount: |
US$ 994 Million |
|
Offering Price: |
HK$29.68 |
|
Offering Size: |
262,991,000 Shares |
|
Stock Code: |
2202.HK |
About China Vanke
China Vanke Co., Ltd. (hereinafter referred to as “Vanke”) was established in 1984. After 34 years of development, Vanke's business in mainland China has covered four major regions: Southern China, Shanghai, Northern China and Midwest China. The core business focuses on the three most vibrant economic circles, including Yangtze River Delta, Pearl River Delta and Beijing-Tianjin-Hebei economic circles, and hub cities in Midwest China. Vanke has also entered Hong Kong and overseas markets. As of December 31, 2018, Vanke's land bank was approximately 149 million square meters.
In 2016, the Group was first listed on Fortune Global 500, ranking 356th. In 2017 and 2018, the Group ranked 307th and 332th in the list. In 2014, Vanke had extended its position as a company offering “good houses, good services, good community” to an “integrated urban services provider” in its fourth ten-year development plan. In 2018, Vanke will further upgrade such position to “urban and rural development and living services provider” and refine it into four roles: a solution provider of better life, a contributor to real economy, an innovator for future development and a creator of harmonious ecosystem.
In the 2018, Vanke ranked second with sales of RMB 606.95 billion in China's real estate business sales TOP200 list, increasing 14.5% from the same period in 2017. The contract sales area reached 40.377 million square meters, increasing 12.3% from the same period in 2017.
In 2018, Vanke had a total revenue of RMB297.08 billion, representing a year-on-year growth of 25.2%. Net profit of 2018 is RMB 49.27 billion, representing an increase of 32.4% over the previous year. As of December 31, 2018, the company's total assets were approximately RMB1,528.58 billion and the net assets were RMB235.62 billion. The net debt ratio was approximately 30.9%, at a low level in the industry.
Source: Company Annual Report
About CMB International
CMB International Capital Corporation Limited (“CMBI”) is a wholly-owned subsidiary of China Merchants Bank ("CMB"). Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide customers with comprehensive, professional and customized corporate finance services including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, structured financing, etc.
Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMBI is China Merchants Bank's overseas integrated financial flagship platform. With the advantages of China Merchants Bank's domestic and overseas synergy and linkage, CMBI effectively combines the wisdom of the local market, the abundant resources at home and abroad, and the close contact with investors. In the past two years, it has dominated or participated in a series of major events in the Hong Kong capital market like IPO, equity refinancing, overseas bond issuance and other projects. According to Bloomberg data, CMBI ranked first in the 2018 Hong Kong IPO market underwriting share. CMBI has gradually become one of the most active and strong financial institutions in Hong Kong's capital market.
