Phoenix Tree Holdings, which renovates and sub-leases apartments in Chinese cities, announced terms for its US IPO on Wednesday.
The Beijing, China-based company plans to raise $164 million by offering 10.6 million ADSs at a price range of $14.50 to $16.50. Investors intend to purchase $115 million worth of ADSs in the offering, including $55 million by insiders, making the deal 70% pre-bought. At the midpoint of the proposed range, Phoenix Tree Holdings would command a fully diluted market value of $3.1 billion.
Operating under the name Danke Apartment, the company operates 406,746 apartment units in China. Close peer Q&K International (QK) is trading down 27% from its November 2019 IPO price.
Phoenix Tree Holdings was founded in 2015 and booked $865 million in revenue for the 12 months ended September 30, 2019. It plans to list on the NYSE under the symbol DNK. Citi, Credit Suisse and J.P. Morgan are the joint bookrunners on the deal. Tiger Brokers was added as a co-manager as of the latest filing. It is expected to price on Thursday, January 16, 2020.
