NEW YORK, Jan 27 (Reuters) - Chinese real estate company IFM Investments Ltd priced its initial public offering at the bottom of a lowered range, an underwriter said on Wednesday.
China's real estate market has benefited from strong economic growth and improved access to credit, but some say the boom might not last.
The company, which has a franchise agreement to sell real estate under the Century 21 brand in China, sold 12.5 million shares for $7 each, raising about $87.4 million.
Earlier on Wednesday it cut the size of its IPO to 12.5 million shares, which it hoped to price between $7 and $8. It had originally planned to sell 16.65 million American Depositary Shares for between $8.75 and $10.75 a piece, and raise about $162 million.
Funds affiliated with Goldman Sachs and GL Asia Mauritius Cayman Ltd are each selling a portion of their shares. After the IPO they will retain a combined 39.5 percent stake in the company.
IFM Investments said in a regulatory filing with the U.S. Securities and Exchange Commission that it will use net proceeds of $83.6 million to open new offices, upgrade its systems, and for general corporate purposes.
The company reported net revenue of 443.7 million yuan ($65 million) for the nine months ended Sept. 30, up 112.4 percent from a year earlier. Net income was 88.3 million yuan, compared with a loss of 99.3 million yuan a year earlier.
IFM is expected to debut on the New York Stock Exchange under the symbol 'CTC' on Thursday.
The underwriters for the IPO were led by Goldman Sachs and Morgan Stanley. They have the option to purchase an additional 1.9 million shares.
(Reporting by Clare Baldwin; Editing by Gary Hill) Keywords: IFMINVESTMENTS/IPO (clare.baldwin@thomsonreuters.com; Reuters Messaging: clare.baldwin.reuters.com@reuters.net; +1 646 223 6189) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
China's real estate market has benefited from strong economic growth and improved access to credit, but some say the boom might not last.
The company, which has a franchise agreement to sell real estate under the Century 21 brand in China, sold 12.5 million shares for $7 each, raising about $87.4 million.
Earlier on Wednesday it cut the size of its IPO to 12.5 million shares, which it hoped to price between $7 and $8. It had originally planned to sell 16.65 million American Depositary Shares for between $8.75 and $10.75 a piece, and raise about $162 million.
Funds affiliated with Goldman Sachs and GL Asia Mauritius Cayman Ltd are each selling a portion of their shares. After the IPO they will retain a combined 39.5 percent stake in the company.
IFM Investments said in a regulatory filing with the U.S. Securities and Exchange Commission that it will use net proceeds of $83.6 million to open new offices, upgrade its systems, and for general corporate purposes.
The company reported net revenue of 443.7 million yuan ($65 million) for the nine months ended Sept. 30, up 112.4 percent from a year earlier. Net income was 88.3 million yuan, compared with a loss of 99.3 million yuan a year earlier.
IFM is expected to debut on the New York Stock Exchange under the symbol 'CTC' on Thursday.
The underwriters for the IPO were led by Goldman Sachs and Morgan Stanley. They have the option to purchase an additional 1.9 million shares.
(Reporting by Clare Baldwin; Editing by Gary Hill) Keywords: IFMINVESTMENTS/IPO (clare.baldwin@thomsonreuters.com; Reuters Messaging: clare.baldwin.reuters.com@reuters.net; +1 646 223 6189) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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