Dalian Wanda, 3699 hk, will stop trading on the Hong Kong Exchange on September 13, 2016. The stock resumed trading after the de-listing approval, and closed at 52.5 hkd, just .3 below the offer price made by a consortium put together by Wanda.
In the meantime, it’s working on its A share listing, which it promised within 2 years from the Hong Kong de-list, giving the consortium buyers liquidity and itself improved access to capital markets. The original A share listing was submitted in July of 2015, with a 1 year extension approved in August, 2016. As shown above, this would equate to about 56.16/share hkd vs. the accepted offering price on the H shares of 52.8 hkd.
Originally the total shares proposed were 300,000. That dropped to 250,000 in August, 2015 while the projected proceeds of 12 Billion rmb remained unchanged. Additionally, the extension request stated that the listing would be on the Shanghai Exchange while the original offered either the Shanghai or the Shenzhen.
The proceeds were earmarked for the following:
The A-share request was submitted to the CSRC in November of 2015 but has yet to be confirmed.
Wanda and its 60 year old Chairman, Wang Jianlin, has a lot riding on the approval besides the needed proceeds. It has reportedly guaranteed an annualized 12% return to domestic investors and 10% to overseas investors if the listing doesn’t happen by 8/31/2018 via promised buyback.