Property developer Dalian Wanda Commercial Properties Co. is planning to issue 300 million yuan denominated A shares with the hope to raise up to 12 billion yuan ($1.9 billion) of funds next year, the China Daily reported.
According to its filing to the Hong Kong bourse on July 3, Friday, Wanda Commercial plans to seek approval from shareholders, the China Securities Regulatory Commission, and other authorities for the proposed issue of up to 300 million yuan-denominated A shares, which will be listed in either Shanghai or Shenzhen.
Wanda's fund-raising plan came in time as the Shanghai Composite Index dropped 28 percent from its June 12 peak, losing at least $2.8 trillion in market value.
Oscar Choi, an analyst at Hong Kong-based Citigroup Inc., said that by listing at China's A-share market, Wanda will gain more.
The report said that after the proposal is approved by shareholders, and the company has 12 months from the date to complete the offering.
Wanda Commercial said that the proceeds will be used for property project investments in Nanjing, Chengdu and three other Chinese cities.
According to the statement released by Wanda, the China Securities Regulatory Commission has not yet approved the offering.
Wanda Commercial's H shares have been traded in Hong Kong since December, while Wanda Cinema Line Co. is the group's only A-share listing trading in Shenzhen.
The company is currently under the control of Chinese billionaire Wang Jianlin, said to be the richest man in Asia, according to the Bloomberg Billionaires Index.
The other filings made public on July 1, Wednesday, include the Guangzhou Evergrande Taobao Football Club, which seeks listing on the National Equities Exchange and Quotations (NEEQ).
The filings showed that Guangzhou Evergrande Taobao has been losing money which amounted to 576 million yuan ($92 million) and 482 million yuan in 2013 and 2014.
Guangzhou Evergrande Taobao is backed by Evergrande, another leading real-estate developer, and e-commerce giant Alibaba, which own 60 percent and 40 percent stakes, respectively.