China Vast seeks up to HK$1.2b in IPO

China Vast Industrial Urban Development filed a prospectus for an initial public offering with the Hong Kong exchange on Wednesday, seeking to raise gross proceeds of up to HK$1.23 billion.

The firm – one of the first developers of large industrial towns, or cities built around industrial parks, on the mainland – has indicated pricing of HK$2.75 to HK$3.75 per share.

China Vast built its first industrial park in 2005 in Langfang, Hebei province. It is working with local governments to develop four industrial town projects with a total site area of 67.5 million square metres, according to a listing document.

The firm reported revenues of 1.2 billion yuan (HK$1.51 billion) last year, a 160 per cent increase over the previous year. Net profit in the first quarter of this year was 101.3 million yuan, a 545 per cent increase over the same period last year.

Morgan Stanley and Citic Securities are jointly sponsoring the IPO.