By Dave Sebastian


Onewo Inc., a Chinese property manager majority-owned by developer China Vanke Co., on Thursday is expected to price its Hong Kong initial public offering at 49.35 Hong Kong dollars, equivalent to $6.29, according to people familiar with the matter.

That expected price sits slightly below the midpoint of its targeted range of HK$47.10 to HK$52.70. It would be raising the equivalent of $733.8 million at that price, based on the 116.7 million shares on offer.

At HK$49.35 a share, Onewo would have a valuation equivalent to $7.34 billion, based on 1.17 billion shares outstanding after the offering.

Global IPO volumes have largely dried up this year, with high inflation, rising interest rates and Russia's invasion of Ukraine hurting stock prices. In Hong Kong, new and secondary listings have raised $7.5 billion so far this year, down 79% from the same period last year, according to Dealogic data earlier this week.

China's struggling property market is a major worry for investors. New home sales and prices are dropping in many cities. Still, Onewo said its profit rose 11% to the equivalent of $45.2 million in the first three months of the year, while revenue grew 44% to the equivalent of $971.4 million.

Vanke in August said its net profit attributable to shareholders rose 11% in the first half of 2022, reaching the equivalent of $1.73 billion due to higher contributions from Onewo and the logistics-and-warehousing business, though sales at its property-development business fell 39% during the period.

Citic Securities Co., Citigroup Inc. and Goldman Sachs Group Inc. are joint sponsors of the offering.


Write to Dave Sebastian at dave.sebastian@wsj.com


(END) Dow Jones Newswires

09-22-22 0733ET