Dalian Wanda property arm going private a year after IPO

SHANGHAI - Dalian Wanda Commercial Properties on Wednesday night announced plans to withdraw from the Hong Kong bourse. The decision comes a little more than a year after its market debut, with the company facing a darker earnings outlook.

The Chinese real estate company will buy its own shares for 48 Hong Kong dollars (S$8.32) each, the same price it set when it listed in December 2014. If it is successful, the buyback is estimated to cost more than HK$30 billion.

The commercial property arm of Dalian Wanda Group has not disclosed its reasons for going private. But the unit expects a sharp fall in revenue for the current business year through December, with China's decelerating economy hampering the real estate market.

Dalian Wanda Commercial Properties shares rose sharply after trading opened on Thursday. The price touched HK$47.20 in the morning -- up more than 20 per cent from Wednesday's close and approaching the high of HK$48.20 set on Dec. 30, 2015. It closed at HK$45.95 on Thursday.

The company last week announced a net profit of 17 billion yuan (S$3.54 billion) for the business year ended December, up 15 per cent on the year. Sales also rose 15 per cent, to 124.2 billion yuan.

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