By Claire Lim


Longfor Group Holdings Ltd.'s property-management unit has filed for an initial public offering in Hong Kong to raise funds to expand in China.

Longfor Intelligent Living Ltd. plans to use proceeds from the offering to make investments and acquisitions in tier-one and tier two-cities in China, among other uses, it said in a draft prospectus filed to the Hong Kong bourse late Thursday.

It didn't specify a timeline for the offering nor the amount it seeks to raise.

The filing comes after Longfor Group in January proposed spinning off Longfor Intelligent Living and listing it in Hong Kong, saying it would continue to hold at least a 50% stake in the company and keep it as a subsidiary.

A number of other property management companies have recently listed, including Jinmao Property Services in March, Redco Healthy Living in April and Lushang Life Services on Friday. China Vanke's property management arm is also planning an offering.

Longfor Intelligent Living has its origins in Longfor Group's establishment of a property management service in 1998. It ranked seventh in the property management services market in China by total revenue in 2021, and had 279.9 million square meters of property management and commercial operations under management in China as of April this year, it said in the filing.

The company's net profit rose to 1.33 billion yuan (US$198.4 million) in 2021 from CNY909.3 million a year earlier, while revenue rose 71% to CNY11.06 billion, it said in the filing. More than a quarter of its total revenue comes from Longfor Group.

HSBC and JP Morgan are among banks advising on the offering.


Write to Claire Lim at claire.lim@wsj.com


(END) Dow Jones Newswires

07-08-22 0317ET