Hefei Urban Construction (HUC) plans to launch its IPO of 26.70m shares, 25.02% of the total share base. Hefei State-owned Assets Holding (HSOAH), the company’s controlling shareholder and actual controller, will hold a 60.17% stake in the company upon completion of new share issuance.
A sizable land bank. As a regional property developer with a mature business model, HUC concentrates on common commercial housing and relevant property development, sales and services. The company currently has a land reserve of 1,294,800 square meters in Hefei, Bengbu and Chaohu. This reserve size suits the company well in view of its present position as a regional leader and existing business scale, which ensures smooth development in the next few years.
A mature business model. “Being large with complete facilities and conveniences,” typical of the residential communities in which the property developer specializes, creates scale advantages and focusing effects. This effectively enhances the quality and competitiveness of its projects.