Jan 09, 2020 (China Knowledge) - According to the latest prospectus filed to U.S. Securities and Exchange Commission, China’s tech apartment management firm Danke Apartment has set its initial public offering (IPO) price between USD 14.50 and USD 16.50. The company plans to issue 10.6 million American depositary shares (ADSs) to raise up to USD 201 mln through the IPO.
Founded in 2015, the Beijing-based Danke Apartment is a leading tech apartment management provider which help property owners lease their apartments on a long-term basis. The company does not have any physical stores and operates solely on an online rental portal. It currently has over 400,000 property units in 13 cities across China, including Beijing, Shanghai and Shenzhen.
In a statement, the company announced that it hopes to invest USD 80 mln from the IPO into enhancing and expanding the company’s operations, such as procurement and leasing of apartments. In addition, the company will also invest USD 40 mln into more advance technologies, as well as improving its branding and marketing strategies.
The residential rental market in China has grew rapidly in recent years, reaching RMB 1.8 trln (USD 260 bln) in 2018. It is expected to increase to RMB 3 trln (USD 430 bln) by 2023.
Danke Apartment considers Alibaba-affiliate Ant Financial as one of its investors. The company is set to list on the NYSE on Jan 16 under the ticker “DNK”.
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