The fourth-richest man in China, plans to raise up to $6 billion with the initial public offering (IPO) of shares in Dalian Wanda Commercial Properties Co. Ltd.
Wang Jianlin has a net worth of $13.2 billion and has increased his holdings from 21 Wanda Plaza mixed use developments to 100 over the last four years. Wang got help from authorities who believed that his purchase would boost local economies and allowed him to buy land at half the price that others would have paid for it.
Dalian Wanda Commercial Properties has grown to become the largest company in the Chinese sector with 178 properties located in 112 cities. Its assets include shopping malls and hotels along with office buildings and residential towers.
In its filing to the Hong Kong Stock Exchange, Dalian Wanda stated that its net profits had fallen by 47 per cent between January and June due to a drop in the fair value gain of its properties.
Revenue also fell during the same period after increasing 70 per cent during 2012-13.
The company said the fall came as it completed fewer residential projects and also because selling prices fell following a lengthy government campaign to stop prices from rising out of control.
Wang will continue to be the controlling shareholder after the IPO. He is the head of the Dalian Wanda Group, and that company wants to increase overseas sales to 20 per cent by the year 2020. It is also looking to increase revenue from $30 billion to $100 billion.
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