IPO makes property tycoon China's richest man
- Source: Global Times
- [02:01 November 06 2009]
- Comments
Evergrande Chairman Xu Jiayin answers questions from reporters Thursday in Hong Kong Stock Exchange where his company was recently listed. Photo: CFP
By Chen Yang
Evergrande Real Estate Group made a better-than-expected debut on Hong Kong's stock market Thursday, even as the benchmark Hang Seng Index fell 0.63 percent, sending its chairman's family fortune to the country's top position.
The company's shares closed at HK$4.7 ($0.6), a 34.3 percent increase from its initial public offering (IPO) price of HK$3.5 ($0.45). With 10.2 billion shares, or a 68 percent stake, Chairman Xu Jiayin and his wife's fortune amounted to HK$47.94 billion ($6.2 billion), surpassing battery-powered car maker Wang Chuanfu's $5.8 billion, who had the leading spot on the Forbes China Rich List released Thursday.
Guangzhou-based Evergrande, which has the largest land reserves of all domestic property developers, raised HK$5.65 billion ($729 million) by selling 1.61 billion shares in October. Last year it planned an IPO worth up to $2.1 billion in Hong Kong, but later backed out due to the financial crisis.
The company realized sales of 23.1 billion yuan ($3.4 billion) in the first nine months of 2009, up 150 percent year-on-year. It currently has property projects in 24 cities including Guangzhou, Tianjin and Chongqing.
