Evergrande Service Unit to Seek Approval for $2 Billion Hong Kong IPO

(Bloomberg) -- Evergrande Property Services Group Ltd. is planning to seek listing approval as soon as next week for its Hong Kong initial public offering, which could raise at least $2 billion, according to people familiar with the matter.

The property management arm of China Evergrande Group could even raise as much as $3 billion depending on market conditions, said one of the people, who asked not to be identified as the information is private.

Deliberations are ongoing and details of the share sale including size and timeline could still change, the people said. A representative for Evergrande couldn’t immediately respond to a request for comment.

Evergrande Property Services filed for the Hong Kong offering with the stock exchange in late September. Evergrande Group owns about 72% of the property services arm, according to the preliminary prospectus.

Huatai International Ltd., UBS Group AG, ABC International, CCB International, Citic Securities Co. and Haitong International are joint sponsors of the offering.

Evergrande is facing pressure to pare back a $120 billion debt pile and increase cash reserves. China’s housing watchdog and central bank have asked some of the country’s biggest developers including Evergrande to report their financing, total debts and business data on the 15th of every month, Bloomberg News has reported.

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With assistance from Bloomberg