The regional property manager has filed for a Nasdaq IPO that would value it at about $100 million and give it a far higher P/E ratio than most of its peers
Key Takeaways:
- Dalu International has filed for a Nasdaq IPO that could raise around $8 million and give the company a price-to-earnings ratio of about 57
- The property management company boasts far higher margins than most of its peers as it transitions into more profitable rental services
China’s property market has hardly been a friendly place for investors these days, as prices continue to slump and thousands of projects remain unfinished due to lack of funds and weak demand. But that’s hardly deterring Dalu International Group Ltd., a regional provider of property management services, which is aiming to raise a relatively modest $8 million in a Nasdaq IPO, according to a filing by the company this week.
Property management companies are one of the few groups that have remained consistently profitable during China’s real estate downturn, relying mostly on regular management fees for their revenue. Still, even this group is coming under pressure, as reflected by data in Dalu’s prospectus that we’ll describe shortly.
This IPO is somewhat unusual for a number of reasons, led by Dalu’s choice to list on the Nasdaq. Nearly all of its peers are listed in Hong Kong, where investors are quite familiar with anything related to China’s property market. Perhaps Dalu is choosing New York for exactly that reason, as it’s also seeking quite a rich valuation compared with many of its Hong Kong-listed peers.
Dalu seems to feel it merits such a rich valuation due to its impressive margins, which appears to be the result of its recent move beyond traditional property management services into more lucrative leasing services. Such services have become its main revenue source since it entered the business just three years ago.
The company also offers a relatively unique …
Full story available on Benzinga.com
The regional property manager has filed for a Nasdaq IPO that would value it at about $100 million and give it a far higher P/E ratio than most of its peers
Key Takeaways:
- Dalu International has filed for a Nasdaq IPO that could raise around $8 million and give the company a price-to-earnings ratio of about 57
- The property management company boasts far higher margins than most of its peers as it transitions into more profitable rental services
China’s property market has hardly been a friendly place for investors these days, as prices continue to slump and thousands of projects remain unfinished due to lack of funds and weak demand. But that’s hardly deterring Dalu International Group Ltd., a regional provider of property management services, which is aiming to raise a relatively modest $8 million in a Nasdaq IPO, according to a filing by the company this week.
Property management companies are one of the few groups that have remained consistently profitable during China’s real estate downturn, relying mostly on regular management fees for their revenue. Still, even this group is coming under pressure, as reflected by data in Dalu’s prospectus that we’ll describe shortly.
This IPO is somewhat unusual for a number of reasons, led by Dalu’s choice to list on the Nasdaq. Nearly all of its peers are listed in Hong Kong, where investors are quite familiar with anything related to China’s property market. Perhaps Dalu is choosing New York for exactly that reason, as it’s also seeking quite a rich valuation compared with many of its Hong Kong-listed peers.
Dalu seems to feel it merits such a rich valuation due to its impressive margins, which appears to be the result of its recent move beyond traditional property management services into more lucrative leasing services. Such services have become its main revenue source since it entered the business just three years ago.
The company also offers a relatively unique …
Full story available on Benzinga.com
The regional property manager has filed for a Nasdaq IPO that would value it at about $100 million and give it a far higher P/E ratio than most of its peers
Key Takeaways:
Dalu International has filed for a Nasdaq IPO that could raise around $8 million and give the company a price-to-earnings ratio of about 57
The property management company boasts far higher margins than most of its peers as it transitions into more profitable rental services
China’s property market has hardly been a friendly place for investors these days, as prices continue to slump and thousands of projects remain unfinished due to lack of funds and weak demand. But that’s hardly deterring Dalu International Group Ltd., a regional provider of property management services, which is aiming to raise a relatively modest $8 million in a Nasdaq IPO, according to a filing by the company this week.
Property management companies are one of the few groups that have remained consistently profitable during China’s real estate downturn, relying mostly on regular management fees for their revenue. Still, even this group is coming under pressure, as reflected by data in Dalu’s prospectus that we’ll describe shortly.
This IPO is somewhat unusual for a number of reasons, led by Dalu’s choice to list on the Nasdaq. Nearly all of its peers are listed in Hong Kong, where investors are quite familiar with anything related to China’s property market. Perhaps Dalu is choosing New York for exactly that reason, as it’s also seeking quite a rich valuation compared with many of its Hong Kong-listed peers.
Dalu seems to feel it merits such a rich valuation due to its impressive margins, which appears to be the result of its recent move beyond traditional property management services into more lucrative leasing services. Such services have become its main revenue source since it entered the business just three years ago.
The company also offers a relatively unique …Full story available on Benzinga.com Read MoreAsia, contributors, IPOs, Top Stories, Exclusives, Real Estate, Asia, IPOs, Top Stories, Exclusives, Real Estate, Benzinga IPOs
