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New Century Real Estate Investment Trust plans to slash its Hong Kong initial public offering by at least 50 percent because of tepid demand for new listings in the city.
New Century Real Estate Investment Trust, the owner of four five-star hotels in mainland China, plans to slash its Hong Kong initial public offering by at least 50 percent because of tepid demand for new listings in the city, citing sources with knowledge of the deal. The company, backed by private equity firm Carlyle Group , has not decided yet on the new number of shares it will offer, but the final size of the IPO will be at least half the up to $254 million originally planned. Carlyle Group, which has been a strategic investor in New Century Group since 2007, also owns other hotel companies in China, including 7 Days Group Holdings and Mandarin Hotel Holdings Ltd. New Century will sell shares at the same original indicative range of HK$3.5-$4.2 per unit, putting the yield of the REIT at up to 9.1 percent. Morgan Stanley and Standard Chartered Plc were hired as joint global coordinators of the IPO. |
