HONG KONG, June 16 Hong Kong-listed real estate firm Franshion Properties (China) Ltd said it planned to raise up to HK$3.39 billion ($437 million) from a proposed listing of its hotel business on the Hong Kong stock exchange.
The developer had said in March that it planned to spin off its China commercial and retail complex, Jin Mao Tower hotel, and eight hotels in the mainland by way of an investment trust to be listed on the main board in Hong Kong. Franshion plans to use the proceeds for refinancing debts and expanding existing businesses.
A total of 600 million trust units are expected to be issued at a price ranging from HK$5.35 to HK$5.65 apiece, the developer said in a filing to the Hong Kong bourse over the weekend. A total of 690 million units will be issued on exercise of an overallotment option.
The proposed spinoff is subject to approval of shareholders and the stock exchange, it added.
($1 = 7.7515 Hong Kong Dollars) (Reporting by Donny Kwok; Editing by Kenneth Maxwell)