New Century Plans IPO in Hong Kong

By Marc Castro

May 04, 2013 10:11 AM EDT

China's largest privately owned hotel chain mogul, the New Century Hotel Group, is planning to raise US$300 million in its first initial public offering by a real estate investment trust within the next two years. According to IFR, the listing would be done in Hong Kong according to anonymous sources familiar with the plan.

The company is backstopped by private equity firm Carlyle Group and decided on the listing in order to attract more investors to its hotel business. It has earlier planned to list both its property development business and hotel business according to the report of the Thomson Reuter publication IFR.

The IPO is scheduled either by the second or third quarter of 2013 and would be the first listing of a REIT in the city since 2011, which was the Hui Xian REIT, the real estate investment trust owned and controlled by Li Ka-shing.

The IPO of New Century is but one of the deals planned to be done within the coming weeks from companies seeking to obtain high yields from the increased demand for commercial properties in Hong Kong.

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