The GDP generated from the real estate sector accounts for around 15% of China's GDP in 2018.
Image credit: Unsplash/EJ Yao
Chinese property sector-targeted ERP (enterprise resource planning) startup Ming Yuan Cloud rose about 56% in its trading debut after raising HKD 6.17 billion in an HK initial public offering.
According to its shares subscription results, Ming Yuan Cloud planned to issue around 374 ordinary A shares. The stock was priced at HKD 16.5 per share, oversubscribed 644.25 times.
Ming Yuan Cloud attracted well-known institution investors, receiving 34.6% of IPO cash from Hillhouse, China Structure Reform Fund, GIC, Blackstone, Sequoia Capital and Fidelity International.
The company offers ERP and SaaS services, leveraging its business through popular products like 'Cloud Chain', 'Cloud Clients' and other services covering operations like selling, procurement, cost managing process. Ming Yuan's service is selected by over 90% of China's top 100 real estate companies.
Strong share price enhancement this year by software names like Kingsoft have stoked investor demand in the digitalization concepts and prompted similar companies to go public.
Due to the social distancing activities, some of China's biggest real estate enterprises accelerated their digitalizing process, branding and selling houses online on different platforms in the first half of 2020. But still, there are many property companies lagged in the transforming wave for various reasons like weak cash flow, management's visions.
Read more about Ming Yuan Cloud