Sunac China Holdings has set a price range for its initial public offering that values the Tianjin-based developer below the other property companies that have listed in Hong Kong over the past couple of months. Based on a price per share between HK$2.90 and HK$3.70, the company is valued at 4.7 to 5.9 times its projected earnings for next year, according to a source -- well below the 10.4 times that Glorious Property Holdings achieved as the first-mover among the 10 property developers that have come to market since mid-September.
With a couple of exceptions, valuations have been trending lower since then but at the bottom of the range Sunac is looking cheap...
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