China New Town Dev IPO

China New Town Development is making an IPO on SGX. The company would offer 12,000,000 shares to the public at 0.83 per share.

From the prospectus,

China New Town Development is a leading new town developer in the PRC. Working
closely with local governments, we are principally engaged in the planning and
development of large-scale new town projects of at least 5 million square metres. We
focus mainly on developing new towns that are located in the suburban areas of China’s
major cities.

- One of the fi rst privately-owned companies to plan and develop new towns in China
- Distinctive business model
- Close cooperation with local governments
- Diversifi ed sources of revenue
- Experienced management team

Growth strategies
- Enhance geographical diversity of our business
- Adhere to international best practice
- Dedicated to improving our profi tability
- Cooperate with leading international property development and management companies

Risk
- Neither we nor our joint venture partners control the timing or the price of the sale of land use rights in new towns we develop
- Our business operations are subject to extensive government regulation
- We do not anticipate generating positive cash flow during the construction period of our projects and will need further financing for future projects
- We face increasing competition that could adversely affect our business and financial position

>> Looking at the offer size to public, there should be high chance to get the IPO. Judging from the institution investor demand, this IPO could possibly do well during the opening. However, given the current uncertainty in the market, it is possible to go the other way also, given the high valuation attached to it. It would be worth subscribing if you have the holding power.