The Company Has Struck The Brass Gong Of The Hong Kong Stock Exchange.

Wanda business is listed at HKEx. The world's largest real estate IPO, nearly three years of the largest IPO, private enterprises in the largest IPO, Wanda business to create the most. In the first few minutes of the market, he took the hammer and waved in the air, simulating the position of the bell, and laughing to tell reporters to take pictures. It was rare to see him in such a humorous time.

At this moment, I waited 10 years. As early as 2005, Wanda was planning to go public, and then applied for listing two times in the domestic A shares. In the past 10 years, there are policy factors, and there are also factors that have questioned the success of Wanda's "selling rent raising" mode. As a leader in commercial real estate, Wanda's rental contribution rate of commercial property is very low, mainly depending on sales property. If it can not be listed, Wanda without capital support is like sitting on the powder keg, and Wanda mode will always be questioned. And this danger is not ruled out. The industry layout of Wanda has never had a solid foundation.

In the past 10 years, Wanda has constantly refreshed people's understanding of it. 500 billion, the scale of assets, huge investment and big acquisitions, Wanda is recognized as a traditional industry. Even if compared with the hottest ones, Wanda is no exception: there are Wanda complexes in the core areas of China's 123 line cities, and it also has a large online consumer group and is developing online businesses. Internationally, Wanda has become a part of China's image. It is one of the few entrepreneurs who are influential in the western world.

"Taking into account its unique mode and connotation, (Wanda listed) is a milestone in the global consumption field." Huang Zhaohui, head of investment banking in CICC, said. In 2012, this magazine analyzed the Wanda model (see the 19 issue of the 2012 cover story "king of consumption"), and pointed out that it is the big consumer in the coming era of consumption. So what kind of new story can Wanda publish after the listing?

"As an old soldier who has been in the investment bank for 20 years, I have participated in numerous listing ceremonies, but this is the first time that so many leading entrepreneurs have appeared in China." Huang Zhaohui, head of investment banking in CICC, said. Many well-known intermediaries such as Goldman Sachs, UBS, DTZ and Leung came to congratulate them. The total number of guests attending the listing ceremony was close to 100. The chairman of the HKEx Li Xiaojia, CEO Zhou Songgang and all the heads of departments attended the ceremony. Such grand courtesy was not available to every company.

Although the scene is very grand, Wanda listed on the first day but fell below the issue price - the opening stock price hit a high of HK $48.2, intraday trading fell nearly 9%, closing price of HK $46.75, down 2.6%. Wanda's timing of listing is not very good. On this day, A shares opened up sharply, Hong Kong stocks also fell in a row, investors' mood was low, and Christmas holidays almost also affected the activity of trading. "Wanda has encountered many setbacks in the capital market. This year's listing is the most direct one, and the result is also catching up with the "occupy the middle" incident, which will have an impact on the timing of Wanda's listing. Wanda, an executive said.

"I'm not at all worried about Wanda's share price," said an executive at UBS Securities at the Wanda listing site. "Wanda business will soon become a hang seng index share because big investment banks will basically match them." At present, they are among the most powerful and background companies in mainland China, such as Hutchison, Kowloon warehouse, China, overseas and so on, and no mainland private enterprises have been selected. He is optimistic about Wanda mode, and thinks that Wanda mode can not be duplicated. Although many people imitate it, only Wanda can make it. In December 24th, Wanda shares rebounded, closing at HK $48.65, up 4.06%.

According to Wanda prospectus, Wanda Commercial IPO plans to sell 600 million shares, of which only 30 million shares are publicly issued and 570 million shares are allocated internationally. In the part of the public offering, 5.32 times the subscription was received, and the international placement was 8 times oversubscribed, of which 338 million were subscribed by 11 cornerstone investors such as the investment office, China Life Insurance, Ping an asset management and so on. In addition to the luxurious shareholder team, Wanda's listing is the direct issue of H-shares, rather than the red chips commonly issued by private enterprises. The direct issue of H shares is a lot of trouble to avoid many regulatory policies, so the private sector such as SOHO and Hong Kong are listed on the red chips. This also explains the energy and strength of Wanda from the side.

　　 list After that, Wanda's total commercial capital will reach 4 billion 474 million 800 thousand shares, and its total market capitalization is around 171 billion 400 million yuan at the issuing price of 48 yuan, which is much lower than that of international investment banks. It is understood that Goldman Sachs, Credit Suisse, HSBC, Citigroup and other internationally renowned investment banks most of Wanda Commercial assets net worth is expected to exceed 300 billion yuan. Wanda was underestimated, then?

It can be calculated in an intuitive way: at present, Wanda has 10 Wanda cities, and each project has invested more than 20 billion, and this alone exceeds 200 billion. In addition, Wanda has 159 Wanda Plaza, 100 of which have already opened. Based on simple calculation, we can draw a conclusion that Wanda Commercial real estate is seriously underestimated. But such valuations also have their inherent reasons.

According to Wanda prospectus, Wanda Commercial real estate revenue in 2011, 2012 and 2013 were 50 billion 800 million, 59 billion 100 million and 86 billion 800 million respectively, most of which came from real estate development and sales, rather than property leasing and management. In 2013, property sales accounted for 86.4% of revenue, and property rental and management accounted for 9.8% of the revenue, and hotel operating revenue accounted for 3.7%. But the premise of the "selling rent" mode is that the real estate development and sales business generate huge cash flow. In 2011, the cash flow generated by Wanda Commercial real estate business amounted to 35 billion 900 million (mainly from property sales), but the cash flow generated by business activities in 2012 dropped to 11 billion 500 million. In 2013, it further dropped to 6 billion 800 million, and the first half of 2014 was 8 billion 950 million. In addition, before July 2017, Wanda's construction projects need to invest 238 billion 900 million yuan. Wanda Commercial real estate also has 144 billion 900 million payables and a total of nearly 180 billion bank loans and outstanding bonds. Although there are 74 billion 800 million cash in Wanda bank account, the funding gap is amazing.

Related sources revealed that Xie It is not very satisfied with Wanda's valuation and financing amount. According to the original plan, Wanda plans to raise 4 billion -60 billion dollars, and finally actually raise 3 billion 700 million dollars. But Wanda, which is not listed, is always a heart disease. Commercial real estate is more dependent on capital than housing. Instead of solving the problem of capital, Wanda is sitting on a powder keg. Domestic real estate financial instruments are extremely scarce, and the cost of financing is very high. Although the amount of listing financing is not ideal, Wanda has already opened up the overseas financing channel. After listing, it is easy to get low interest money on the international bond issue.

　　 Wanda The industrial layout of diversification and internationalization is magnificent. But without capital support, it can never form a closed loop in value. In addition, the greater the transparency of a large company, the more secure it is. External constraints will help it grow. If Wanda reaches long-term opaque state, the risk factor will increase. Since 2013, it has been repeatedly said that "listing is to make Wanda more and more transparent". The goal is to make Wanda an international company, not to be listed nor to match the internationalization strategy.