Caixin
Apr 10, 2021 05:27 AM
BUSINESS & TECH

Real Estate Platform Anjuke Files for HK IPO

A billboard advertisement for Anjuke.
A billboard advertisement for Anjuke.

Tencent-backed real estate information platform Anjuke Group Inc. filed for an initial public offering (IPO) Thursday on the main board of the Hong Kong Stock Exchange.

The company didn’t disclose the offering size or timeline. In its last attempt to go public in 2014, Anjuke was valued as high as $1.5 billion. Amid a series of disputes with real estate brokerages and developers, the company’s valuation shrank sharply. In 2015, it was sold to 58.com, the “Chinese Craigslist,” for about $267 million.

Tencent Holdings Ltd. holds 14.1% and 58.com owns 45.3% of Anjuke, according to the prospectus. Other major shareholders include private equity firms Warburg Pincus and General Atlantic.

Anjuke generates about 97% of its revenue from listing fees paid by real estate brokerages. In 2020, the company reported online marking service revenue of 7.8 billion yuan ($1.2 billion).

It also receives commissions from facilitating new property sales through the 58 Aifang platform. In 2020, 58 Aifang contributed revenue of 228 million yuan. Anjuke reported a net profit of 1.95 billion yuan in 2020 on revenue of 8.05 billion yuan, according to the prospectus.

New home transaction services will be the main driver of growth in 2021, and funds raised through the IPO will mainly be used to develop technology products and expand the new home transaction services business, Anjuke said in the prospectus.

In the new home sales sector, Anjuke will mainly compete with larger rival KE Holdings Inc., also known as Beike Zhaofang and also backed by Tencent. In 2020, 58 Aifang’s total transaction value was 65.3 billion yuan, far below KE’s 1.38 trillion yuan of sales of new homes.

KE Holdings raised $2.12 billion in a New York IPO in August.

Contact reporter Denise Jia (huijuanjia@caixin.com) and editor Bob Simison (bobsimison@caixin.com)

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