Wanda, R&F Seek Shanghai Listings as China Re-Opens IPO Gates

Developers Dalian Wanda and Guangzhou R&F Properties could be among the first batch of companies to list on mainland exchanges as China’s government prepares to re-open new stock market listings following this summer’s crash.

The domestic stock market listings could provide welcome new funding avenues for the two developers as land prices continue to rise in China’s first-tier cities, and both companies continue to pursue aggressive expansion plans overseas.

Chinese regulatory authorities announced earlier this month that IPOs would resume after being cut off in July in a government attempt to prop up a rapidly sliding stock market.

Getting New Cash Through New Listings on the Mainland

Both Wanda, which is controlled by China’s richest man – Wang Jianlin, and R&F already have publicly listed vehicles on the Hong Kong stock exchange, and Wanda’s theatre subsidiary, Wanda Cinema Line, listed on the Shenzhen exchange in January of this year.

However, with many foreign investors growing more cautious about investing in China’s highly leveraged real estate sector during a market slowdown, the mainland listings are seen as a potential additional source of equity.

R&F Aims for RMB 35B, Wanda for 12B

R&F, which has vied with Wanda to become one of China’s biggest overseas investors in development projects has applied to raise about RMB 35 billion ($4.52 billion) through a listing on the Shanghai stock exchange, which would create the bourse’s biggest listing since 2010, according to an account in Reuters.

The Guangzhou-based company has now invested in at least 15 development projects outside of China, including three properties in San Francisco, a residential project in San Jose, six sites in Malaysia and at least five projects picked up in Australia.

Wanda boss Wang Jianlin is seeking a Shanghai listing for Dalian Wanda Commercial Properties, the same commercial real estate development firm which the tycoon listed on the Hong Kong exchange last December in a record-breaking $3.7 billion IPO. On the mainland, Wanda is hoping to raise about RMB 12 billion ($1.55 billion), from the initial offering, although Chinese share listings typically leap several-fold after the IPO.

Even after this year’s stock market crisis in China, the price of shares in Wanda Cinema Line on the Shenzhen exchange have risen more than 560 percent since their debut in January.

Wanda Commercial Properties is China’s largest commercial developer, and has more than 100 Wanda Plaza malls on the mainland. The parent company, Dalian Wanda, is making a major push to diversify into theme parks, ecommerce and other business areas.

Wanda has also been active overseas, launching the One Nine Elms residential project in London, as well as buying up development sites in Chicago, Los Angeles and Australia.

The two companies are among 84 Chinese corporations who have applied for regulatory approval for new stock listings, according to Reuters.