By Clarence Leong


Chinese property manager Onewo Inc., which is majority-owned by China Vanke Co., is preparing to launch an initial public offering in Hong Kong, despite continued turmoil in the real-estate sector and tepid investor sentiment.

The company hasn't yet disclosed how much it intends to raise from the IPO but a filing on Thursday showed it has cleared its listing hearing with the Hong Kong stock exchange, meaning it can now start marketing the offering.

Last year, Onewo increased its net profit 14% to 1.67 billion yuan ($241.8 million) and grew revenue 31% to CNY23.70 billion, it said in the filing.

Vanke and its subsidiaries hold a combined 62.89% stake in Onewo, the filing showed.

The planned listing comes as China's property market remains mired in a prolonged downturn, with developers' contracted sales still down by double-digit percentages from the previous year. Despite the slump, Vanke, one of China's leading developers, grew its net profit 11% in the first half from a year earlier and increased revenue 24%.

The sector turmoil, including delayed housing project deliveries, corporate governance issues and shaky liquidity, has hit shares of property managers.

Shares of Country Garden Services Holdings Co., Shimao Services Holdings Ltd. and Sunac Services Holdings Ltd. have slid 61%-71% so far this year.

Onewo, which serves corporate and government clients beyond offering property-management services like home sales and renovation, also has a technology offerings segment.

The planned listing follows that of Longfor Group Holdings Ltd.'s property-management unit, which filed for a Hong Kong IPO in July. A number of other property managers have also listed this year, including Jinmao Property Services Co., Redco Healthy Living Co. and Lushang Life Services Co.


Write to Clarence Leong at clarence.leong@wsj.com


(END) Dow Jones Newswires

09-02-22 0319ET