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Warburg Pincus-backed Sunshine 100 raises $259m via HK IPO

  • Andrew Woodman
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Sunshine 100 China Holdings - a commercial and residential real estate developer backed by Warburg Pincus - has raised about HK$2 billion ($259 million) after pricing its Hong Kong IPO at the bottom of the indicative price range.

The company offered 500 million shares at HK$4 apiece, compared to the proposed range of HK$4 to HK$4.80. According to the prospectus, the company plans to use 60% of the IPO proceeds to buy new projects and land for development in mainland China, while 30% will be set aside to finance the development of 14 existing projects in the country. The remaining 10% will be used as working capital.

BNP Paribas, China International Capital Corp (CICC) and Citigroup acted as joint global coordinators for the IPO, while six other banks also helped manage the deal.

Set up in 1994, Sunshine 100 focuses on second- and third-tier cities and has projects in 16 cities including Tianjin, Chongqing, and Wuhan.

Warburg Pincus - which holds a 5.17% stake in the firm following the offering - invested in the company in n 2006, when it injected $25 million in the firm's projects in Chengdu, Sichuan, Shenyang, and Liaoning provinces through an affiliate. The private equity firm then funded the property development business itself, investing an additional of $80 million.

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