Vanke Property Services Unit Aims A Billion-USD IPO

Real Estate Author: Fuller Wang, Pandaily Sep 02, 2022 04:25 PM (GMT+8)

Onewo, formerly known as Vanke Service, was once the property service department of Vanke. The company’s earliest official announcement that it would split Onewo to go public was in 2021.

Vanke

Onewo, a property management service provider, on September 1 passed a review by the Hong Kong Stock Exchange (HKEx) for a public listing. The firm will become the sixth property stock listed in Hong Kong this year. The company has established a business model including the following three segments: residential consumption services, comprehensive services for commercial enterprises and urban space, and AIoT and BPaaS solution services, accounting for 55.5%, 36.7% and 7.8% of the company's total 2021 revenue, respectively.

Onewo, formerly known as Vanke Service, was once the property service department of Vanke. The company’s earliest official announcement that it would split Onewo to go public was on November 5 last year. On April 1 this year, Onewo officially submitted a prospectus to the HKEx for listing, with co-sponsors CITIC Securities, Citibank and Goldman Sachs. As for the valuation of Onewo, Vanke’s management team has always maintained a rather rational attitude. On August 31, at the 2022 interim results meeting, Vanke Chairman Yu Liang said that the firm had spun off Onewo for more development potential through a listing instead of pursuing short-term profits.

According to the prospectus submitted before, from 2019 to 2021, the revenue of Onewo was CNY 13.927 billion, CNY 18.145 billion and CNY 23.705 billion respectively, with a CAGR of 30.46%. Corresponding annual profits were CNY 1.04 billion, CNY 1.519 billion and CNY 1.714 billion respectively, with a CAGR of 28.37%. In the first half of this year, Onewo achieved an operating income of CNY 14.35 billion, a year-on-year increase of 38.2%.