On December 11, 2020, Country Garden Services Holdings Company Limited (“the Company” or “Country Garden Services”, 6098.HK) has successfully completed a follow-on offering on Hong Kong Stock Exchange. The offering size is HKD 7.785 billion (US$1.004 billion). CICC acted as the Lead Placing Agent.

This is the largest ever follow-on offering in the Chinese property management industry in terms of offering size. It also marks the largest follow-on offering since the company’s listing in terms of offering size.

Country Garden Services was founded in 1992. After 27 years of steady development, the company’s business covers residential properties, commercial properties, office buildings, multi-functional complex buildings, government and other public facilities, industrial parks, highway service stations, parks, schools and so on. As of the end of June 2020, the Company’s property projects have reached 2,405, covering more than 350 cities. and achieving management area of about 764 million square meters.

Country Garden Services has achieved outstanding financial growth. In 2017, 2018, 2019 and the first half of 2020, the Company generated revenue of RMB3.12 billion, RMB4.68 billion, RMB9.65 billion and RMB6.27 billion, respectively, and net profit of RMB0.40 billion, RMB0.92 billion, RMB1.67 billion and RMB1.32 billion, respectively. As of the end of June 2020, the Company recorded total assets of RMB18.05bn, total liabilities of RMB11.26bn and shareholders’ equity of RMB6.79bn, of which RMB6.44bn was attributed to owners of the Company.

CICC seized a good market window on 10 Dec and completed pricing on the same day with high efficiency. The deal was well sought after by institutional investors. Positive feedbacks from wall-crossed investors provided condition for the launch of the deal on the same day after wall-crossing started. CICC has full visibility of the book as indicative orders from wall-crossed investors fully covered base deal size. After the deal was launched, multiple top-tier long-onlys and existing shareholders participated. The book was multiple times covered shortly after the deal was launched. The final offering size upsized from US$640 million to US$1 billion.

As a leading investment bank with “Chinese Roots, International Reach”, CICC will continue to utilize its capital market expertise as well as its seamless cooperation of onshore and offshore businesses to provide customized and top-notch capital market support to Country Garden Services in terms of introduction of global investors, reaching international capital market and promoting global business development.