By Joanne Chiu
The property-management arm of China Evergrande Group priced its Hong Kong initial public offering near the low end of an earlier price range, the latest effort by the heavily indebted developer to raise funds.
Evergrande Property Services Group Ltd. fixed its offer price at 8.80 Hong Kong dollars, the equivalent of US$1.14 a share, according to two people familiar with the situation. It previously gave an indicative range of HK$8.50 to HK$9.75 a share.
The deal will raise gross proceeds of HK$14.3 billion, or about US$1.8 billion. Half of the funds raised will go to Evergrande, the parent company, and the remainder will go to the property-management subsidiary.
Shares of Evergrande Property Services will begin trading on Hong Kong's stock exchange on Dec. 2.
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