Longfor Group’s property management arm plans Hong Kong IPO

By Claire Lim

The property management unit of Longfor Group Holdings Ltd. has filed for an IPO in Hong Kong to raise funds to expand into China.

Longfor Intelligent Living Ltd. plans to use proceeds from the offering to make investments and acquisitions in tier one and tier two cities in China, among other uses, it said in a draft prospectus filed with the China Stock Exchange. Hong Kong on Thursday evening.

He did not specify a timeline for the offering or the amount it seeks to raise.

The filing comes after Longfor Group proposed in January to spin off Longfor Intelligent Living and list it in Hong Kong, saying it would continue to hold at least a 50% stake in the company and retain it as a subsidiary company.

A number of other property management companies have recently listed on the stock exchange, including Jinmao Property Services in March, Redco Healthy Living in April and Lushang Life Services on Friday. China Vanke’s property management arm is also planning an offer.

Longfor Intelligent Living has its origins in Longfor Group’s establishment of a property management service in 1998. It ranked seventh in China’s property management service market by total revenue in 2021 and had 279.9 million square meters of property management and business operations under management in China as of April this year, it said in the filing.

The company’s net profit rose to 1.33 billion yuan ($198.4 million) in 2021 from 909.3 million yuan a year earlier, while revenue rose 71% to 11 .06 billion yuan, it said in the filing. More than a quarter of its total turnover comes from the Longfor group.

HSBC and JP Morgan are among the banks advising the offer.

Write to Claire Lim at [email protected]