September 28, 2007, 10 am: Shares in Sino-Ocean Land Holdings Limited (referred to in the following as "Sino-Ocean Land", stock code 3377.HK) will be listed on the main board market of the Hong Kong Exchange (referred to in the following as HKEx). With these shares Sino-Ocean Land, which made its first appearance in HKEx as a mainland red-chip stock, turns a new page in its corporate development.
As indicated in Sino-Ocean Land's previously issued public offering, the company plans to offer for sale 1.5512 billion shares of stock, some 36.6% of its enlarged share capital, raising as much as HKD 11.9 billion. Shares officially went on sale beginning September 14th at 9 am, with registration applications closing at noon on September 19th. During the global roadshow and public offering stages, Sino-Ocean Land planned a public distribution of 1.5512 billion shares, including 155.12 million shares for sale in Hong Kong and an international placement of 1.39608 billion shares. The Hong Kong portion was oversubscribed by 206 percent; subscriptions for the international placement amounted to some USD $100 billion, or approximately HKD 780 billion.
International investors watch closely as Sino-Ocean attracts "Asia's master of stock"
Even before its official listing, Sino-Ocean Land had already been anointed by much of Hong Kong's media as one of the most-watched new stock offerings for the cycle. Lian Jinghan, Associate Director of Prudential Brokerage Limited, said in an interview with a Hong Kong reporter that Sino-Ocean Land had a solid track record, a large number of shares in issue and an improved allocation rate. The company, he suggested, might well be a main focus for investors. It has also been reported in the Hong Kong media that before making its public offer, Sino-Ocean Land had won subscriptions from 10 major corporate investors. These investments totaled HKD 1.872 billion, approximately 16% of the maximum amount raised. In addition to such corporations and institutions as Och-ziff (one of the world's largest hedge funds), China Life, the Government of Singapore Investment Corporation Pte Ltd (GIC), Kuok Brothers Sdn Bhd, HKR International Limited, BOCOM International, Caricom, Fidelity Select Insurance and Sinotrans, Sino-Ocean Land has also won investment from the man known as "Asia's Master of Stock", Henderson Land Development chairman Lee Shau-kee, who became one of its shareholders. Reportedly, Mr. Lee's private investment firm Shau Kee Financial will subscribe for USD 30 million in Sino-Ocean Land shares.
Sino-Ocean Land is believed to have had private placements from overseas investors already in the works, even as it geared up to go public. In December of 2006 Sino-Ocean Land's assets management department--established specifically for the purpose of promoting the company's listing--managed to bring in a number of well-known international investment firms within the space of just two weeks, including Morgan Stanley, Standard Chartered, Merrill Lynch and UBS. This success created a net increase of about RMB 1.6 billion in equity for Sino-Ocean Land’s stockholders, and the company is developing into a wholly foreign-owned enterprise with a state-funded background, achieving a diversified and internationalized equity structure; its registered capital grew from RMB 1 billion to RMB 2 billion.
Propelled by these changes, on December 6, 2006 Sino-Ocean Land formally launched plans to reorganize the company known as "Seagull Planning" for listing. Morgan Stanley and Goldman Sachs were confirmed as co-sponsors.
Investment of total funds raised into eight development projects sends future stock index soaring
Under Sino-Ocean-Land's plan, net proceeds of this listed issue will be used in whole for 12 development projects under its subsidiaries. Among these are five projects in Beijing (North Fourth Ring Road East, Ocean Donglong Villas, Ocean Office Park, Ocean Jiangtai Business Center, and the second stage of Ocean Express); three in Tianjin (Tianjin Pulida project, Haihe New Skyline and Tianjin Ocean Express); two in Dalian (Red Star and Ocean Prospect); and one each in Zhongshan and Shenyang (Ocean City Zhongshan and Ocean Paradise Shenyang, respectively).
Sino-Ocean Land is said to have a total of 21 development projects in Beijing, Shenyang, Dalian and other cities. As of July 31st 2007, the company had completed the development of projects with a total GFA of approximately 2,283,008 square meters. Our current land reserves have a total planned GFA of approximately 8,590,426 square meters, for which we hold land use right certificates, have signed land grant contracts or have successfully tendered. Among those, we hold land use rights certificates for a total planned GFA of approximately 6,686,048 square meters, of which approximately 2,849,448 square meters were under development as of July 31, 2007.
Sino-Ocean Land is currently based in Beijing. A nationwide distribution is already taking shape, supported by offsite development in economic-powerhouse sectors such as the Pan Bohai region and plastic-molding components. Between July and the end of the year, a succession of eight major properties owned by five Sino-Ocean Land subsidiaries in Beijing, Tianjin, Shenyang and Dalian are scheduled for launch. The large sum raised in Hong Kong will undoubtedly provide a substantial financial guarantee for the successful development and market promotion of these projects.
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