Zhong An Intelligent Living, property managers for Zhong An Group, have listed on HKEX raising HK$113 million (US$ 14.5 million) through the sale of 156 million shares. Intelligent Living’s listing expenses of around HK$53 million have already eaten up almost all the funds raised.
Many property companies have sought IPOs as an alternative financing channel, but smaller firms are finding the going tough.
LI Shufu, chairman of automaker Geely Group, withdrew as a cornerstone investor, and the listing is crucial for Zhong An Group, laden with debt that it cannot otherwise meet.
The group had a cash balance of HK$3 billion last year, but liabilities are around HK$9 billion. Core real estate sales dropped by 48.9 percent in 2022.
One thing's for sure, the HK$60 million left from the Intelligent Living IPO will won't buy much time.
